The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1914-07-15
WEDNESDAY,, JULY IS, 1914.
THE BALANCE OF TRADE.

One of the eVer-ready and constant
Iv used Of the Ole stand
patters in favor Of a high protective
tariff was the balance Of trade" the
DRY. If a country sent out of it's bor-
ders more goods than it brought in,
the balance Of trade was said to be
favorable, because the country was
gaining in cash wealth the differ
,ence between it's exports and it's i'm
ports. North Dakota has heard the
changes rung on this theory time and
again during political campaigns Of
the last.
But now that the balance Of trade is
still in favor Of Uncle Sam, despite the
low democratic tariff, the balance OF
trade theory does not amount to
much, according to that strongly anti
administration paper, The New York
Journal of Commerce, which says:
There is little meaning on the
surface Of the figures issued by
the bureau Of foreign and domes-
tic regarding the value
of the imports and exports Of the
various commercial nations.
There is an enormous aggregate
of $40, O0O, 00O, 900 in the value Of
both imports and exports, with a
difference Of 81, 900, 600, 900 between
the two, though they consist Of
the same goods exchanged be-
tween different nations, the ex-
ports Of each being distributed
. among the imports Of others. The
statistics are altogether uncertain
in detail, valuations varying in
method in different countries, and
in the case of exports being large
ly a matter Of estimate. Where
there is no official reason for &C
CuraCy ON account of revenue col
lection of one kind or another, lit
tie pains is taken with the figures.
No account is taken of transfers
OF gold in payment Of balances,
n extinguishing other than
commercial credits with Commodi-
ty values does not appear in the
statistics.
What usually attracts most at
tention or exCites most interest in
these statements is what is called
the balance of trade" between
different nations, n this is still
very commonly m~iSCOnStrued.
There Is constant occasion for try
ing to dispel an old and persist
ent deluSiOn that exporting from
q country more Vlaue In its prod
ucts than is imported Of the prod
uctS of other countries, is a ma
tional advantage and is enriching
the country which sells more than
it buys. This is the antiqUated
mercantile theory, and Is largely
the foundation of the protective
policy, which excludes or restricts
imports in order to give the do
nestle market more completely to
home industry and to have the
surplus for export bring in money
from other lands, as if money
were synonymous with wealth in
stead Of being only a means Of
exchanging articles Of value at a
definite relation.
These large figures just issued
show that Great Britain still has
far the largest foreign trade, and
Germany the next, with the Unit
ed States third in the list. Great
Britain imports about $3.50, 600. 900
in value more h a 1t exports, and
Germany $3.50, O00, 900 more, while
the United States exported in 1913
owe $500, 900, 900 in value in excess
of its imports. That by no means
indicates that this country was
acquiring more wealth from for
eign trade than the leading coun-
tries of Europe, but precisely the
contrary. Whatever it may have
bee doing in internal develop
ment and the exchange Of it's own
products among its own people,, it
was parting with much greater
value in this trade than it was re-
ceiving in return, for the value lies
in the products and not in the
money or the statistics. The figures
show that it was sending a great
deal more abroad to pay debts and
for foreign service rendered than
1t was getting for service rendered
by American capital and debts due
from foreign countries.