Milford chronicle., 1921-10-14
THE TYING TRADE THEORY

"Criticizing the Tying trade theory,
the Republican Publicity Association,
through it's President, Hon. Jonathan
Bourne. Jr., says:
An absolutely new theory of econ
omics has been advanced in the Unit
ed States the author being f. Ed
monds Tying, Jr, who sets forth his
ideas in an article in Il recent num-
Der of the 'Annalist.' The essence of
his idea is contained in this para
graph:
There is a sound basis to the
assumption that if we pay more at
tention to our import trade our ex-
port trade will not only take care
of itself, but will not need nursing
and cuddling to enable it to do so.
Imports are what a nation buys
from others; exports what nation
sells. Applying Mr.. Tyng's theory to
a mans private affairs, the rule would
be, buy more, and your selling will
take care of itself 1t is an entirely
new philosophy of trade, and we can
well commend it to our neighbOrs,
postpOning for the present our own
adoption of such innovation.
MI. Tying deprecates the popular
idea that a favorable balance of trade
is something greatly to be desired. We
naturally wonder whether that is the
theory on which he runs his own pri-
vate business-whether he likes to
have a red ink balance instead Of a
credit balance ON his own books and
at his bank. We have seen some peO-
pie who conducted their business that
way, but they usually wound up in
bankruptcy courts and left their wild
ows and children with nothing but un-
pleasant reflections when they passed
to the great beyond.
"Ihis founder of a new school of
national economics asserts that the
so-called favorable balance of trade is
a popular delusion.' But, if a nations
business is governed by the same
principles which govern private busi-
ness, and we believe it is, then there
is something more than delusion to
a favorable balance. We do not know
farmer who thinks it is a delusiOn
to sell more than he buys; we do not
know a manufacturer who thinks it
a delusiOn to find his sales greater
than his purchases; we do not know
laboring man who deems it delusiOn
to have his earnings greater than his
expenditures. Moreover, we do not
know a banker who looks with disfa-
vor upon applicants for loans if their
business is conducted upon plans
which result in favorable balances.
"One more new idea in national
economics is set forth in Mr.. Tyng's
assertion that goods sold abroad by
nation may be paid only by goods
bought in return We had always
thought, and the records support the
belief, that goods may be paid for in
services-in ocean transportation, in
terest on capital, service for tourists,
insurance premiums, etc. Throughout
most of it's history the United States
has been a creditor nation in handling
merchandise but a debtor nation in
services, with the result that we were
a net debtor up to the outbreak of the
European war During a few months
in 1914, under the Democratic tariff
law, we were a debtor nation in mer-
chandise also, and American mills
were closed in order that we might
pay the attention to imports which
Mr. Tying considers so important. In
view of our experience in that year,
there is no likelihood whatever of our
going back to a policy that leaves us
an adverse balance of merchandise
trade.
1.-THE amazing thing is that period /
cal of the high standing of the An
nalist' would give space to an article
so manifestly unsOund as that writ
-en by Mr. TYng"