White Pine news weekly mining review. [volume] (East Ely, Nev.) 1910-1920, 1913-08-03
GOLDEXPORTSvS
GOLD IMPORTED
'INVISIBLE' BALANCE AGAINST
THIS NATION REASON WHY 50
MUCH YELLOW MONEY Is SENT
ABROAD.

The question is often asked why
SO much is heard of the expectation
of gold from the United States to
foreign countries and so little
brought into this country, when, as
q matter of fact, the trade balance is
SO great in favor of the United States.
our exports far exceeding our inn
ports. p. C. Forbes, business editor
of the New York american and a
student of financial and business
conditions, has explained the situa-
ton in simple language as follows:
In the last ten years the United
States has piled up an export balance,
in merchandise of $4,7O0, 600, 900.
During the same period we have
imported. on balance less than
10000, 00O of gold.
Since January l last we have
shipped abroad s195. 900. 900 more
merchandise than We have bought
from foreigners. yet France has TAX
en- from us more than $4,000, 600
gold and We have exported, for
European account. some $25 900
to South America.
How can we be forced by Europe
to part with $50, 900, 600 gold this
year when we have a favorable"
trade balance of 5s9.000.O 00 for
the current fiscal year?
| have been asked repeatedly dur
ing the last few weeks to explain,
in simple language. the reasons n
DERIVING a movement so %perplexing
on its surface.
America has an enormous .'in-
visible" balance against her every
year. Experts estimate that Amer
lean tourists now leave $500, 600, 900
in Europe every summer, while
Americans resident abroad spend at
least a million dollars a day, all
drawn from this country. Then.
thanks to our miserable merchant
marine. we have to pay foreign
shipping companies some $500. 000,-
900 annually for freights. So great
is the mass of American securities
owned by foreigners that the yearly
payments in interest and dividends
aggregate something like $500. 0O0.~
000. Foreigners working here re-
nit $1,000, 000 every business day
TO their folks at home.
John E. Gardin, one of the ablest
foreign exchange bankers in New
York and vice president of the Ma
tional City Bank, has made ex-
haustiye Investigations into this sub
iect. | asked Mr.. Gardin to give me
estimates for the present-day condi-
tions. Here are his figures:
Our Annual Payments Abroad.
Spent by Tourists ....S SOC. 600
Spent by American
residents abroad 400, goo, 600
Interest and dividends
on securities held
abroad ......... 500, 900
Freights to foreign
steamship companies zoe, 900, 900
Remittances by for
eigners .......... 800, 200, 000
Total ,......... 50 600 GOO, 900
These figures are the highest ever
III by any recognized author
ity. but 1t must be remembered that
there has been an increase in every
item during recent years.
Taking Il merchandise export
balance at $500. 00o. 900 a year and
the invisible" account against us at
1900, 000, 900, there is a net bal
ance against us of $500, 900 90.
This has I o be met chiefly by sales
of American securities to foreigners,
mostly Europeans.
Therefore, Europe. by stopping her
purchases of our investments or by
returning a small part of her hold
ings, can get gold from us in pay
ment whenever she wants it, broadly
speaking. We are without such
means to check gold shipments as
European countries possess, for ours
is a free" gold market, whereas a
premium can be imposed abroad.
1t may be interesting to give our
merchandise export balance for the
last ten years:
Year. Export Balance.
1904 $469,740,0 900
1906 4O1, O49,O0O
1906 SIT 900