The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1910-06-28
MAY HAVE BALANCE.

Secretary MacVeagh is represented as
pleased with the condition at The end
Of the fiscal year, which will close on
Thursday next, juno both He is not
at all assured of balance of receipts
over expenditures, but concludes that
there may be such a balance pro-
vided the corporations pay in to the
treasury $l5,O00.o00 during the four
days that remained of the fiscal year,
when his talk was had. The likeli-
hood of the corporations paying in this
sum OF money In these four days is ex-
tremely remote, and vet on that pre-.
carious possibility Secretary MacVeagh
bases his hopes of credit balance
at the end Of the fiscal year, The
enormous appropriations made by the
session OF Congress that has just ended
will. of course, not become available
until the beginning Of the new fiscal
year. July J.. on Friday next. But
the appropriations for the fiscal year
lust ended amounted to a. good deal
more than a billion dollars, and so the
treasury will be short unless the
miracle happens that Secretary Mac.
Veagh suggests.
The new tariff law is being boosted
as a "revenue producer 1t is
revenue producer only as it makes this
country poor. II is revenue pro,
ducer in that it induces the import and
sale here against our home products
of immense and needless quantities of
foreign goods, and in order TO pay
for these goods we have to ship
enormous quantities Of gold or securi-
ties abroad; and the more of our So
curities we sell abroad, the greater is
our indebtedness abroad and the larger
our remittances must be yearly to pay
interests and dividends.
Our balance of credit in our foreign
trade has usually averaged about $780,
100000. 1t takes Just about that
amount to preserve the commercial bal
ance AS between what we export and
what we buy, what we pay to Eu-
rope in foreign travel, interest and
dividends, and remittances by foreign
laborers to their homes in the old
,
over imports will probably be some
thing less than 5000, 100000, whereas
it has for many years been enough TO
square all accounts. For the eleven
months of the present fiscal year the
excess of exports over IMPORTS was
but $l79, 900; for the month of May
the excess of exports was $11 100000,
so that we shall probably fall some
thing below the S200,000,000 mark in
our credit balance. But as it requires
$500, 100000 to make our settlements on
all accounts, we are 300,000,000 short
We have already sold something over
100000 of railroad bonds and other
securities, have exported nearly $780,
100000 in gold, and still we are short.
And the more of our bonds and Sc
curities we sell abroad, the moro we
shall have to pay in interest and divi-
dend accounts, The way we are going
now, we simply add to our foreign OBJ
liqations, and larger and larger sums
will be needed to meet the yearly pay
ments on those accounts.
In the shifting of tho pendulum
there has been from time to time a
crisis In Europe which compelled the
of American securities held
there. We have to buy them back.
Heretofore we have been able to do
this in large quantities because of
our favorable balance of trade But if
the pinch should come upon Europe at
the present time, or when conditions
are the same as they are now, it would
be impossible for us to redeem our own
securities, and there would be world
wide panic, such as the present genera
ton has not seen.