Evening star., 1932-07-10
FAVORABLE TRADE
BALANCE RETAINED
1891 Figures Show Sharp
Reduction From 1880.
Payments Analyzed.
BY LOUIS E. VAN NORMAN.


Publication OF Uncle Sans annual
cash book" discloSes the fact that all
the items of current income and current
outgo Of our national establishment for
1881 were lower than in the preceding
year. This, of course, was due prin-
cipally to the worldwide decline in COM
modify prices and to the general fall in
the worlds purchasing power.
The story Of the balance Of interna-
tional payments Of the United States in
1891, prepared annually for a decade by
the Finance and Investment Division of
the Department Of Commerce, shows
that during 1881 our favorable trade
balance in merchandise, after adjust
1894 900, 900, as compared with $7l4,-
100000 the preceding year.
Foreign Payments Smaller.
Even the payments by foreign govern
ments on the much-diScussed war debts
were less than in 1880, as result Of
the temporary suspension of certain IN
tergovernmental obligations in accord
ance with President Hoover's mora
IOTluI1 DTDDOSdl OI ~, tdob.
This balance" Of international pay
ments is made up of figures showing
the countrys merchandise trade bal
ance the underwriting OF foreign Sc
curities. advance sales and problems OF
merchant marine, gold shipments and.
in general, Uncle Sans status as an
international banker.
Besides these "visibles," however.
there are 'invisiblss" in the form of
business advance loans, investments
and services, the very existence OF
which Is unknown to most persons
here Included in these are iInmi-
! grants remittances, tourists expendi-
\ lures, payment on securities and others.
The total of these invisible trans
actions, together with the years COM
modify trade, left the rest Of the world
| indebted to the United States to the
amount Of $172,o0o,o0o It will be in
| teresting to note the fact that United
| States tourists last year spent Is per
cent less abroad than in 1880. There
has been confusion In the minds Of
many business men as to the actual
| effect of the abandonment of the gold
standard by a number Of nations, no
tably Great Britain, Denmark, Sweden,
Norway. Finland and Japan, all since
| September, 1881 OF course the stis-
pension Of gold payments by these Gus
toners Of the United States was bound
to exert an influence upon the inme-
diate creditor debtor relations between
them and the United States. While It
Is impossible to set down the exact
! statistical weight of these influences,
the compiler Of this balance of inter-
national payments, DR.. Amos Z. Tay-
lor assistant chief Of the Finance and
Investment Division of the Department
Of Commerce, believes 1t would be quite
erroneous to assume that American
importers have experienced all the
gains and that exporters abroad suf-
fered all the losses
A significant point brought out Ia
the study is the fact that during 1891
there was a net outflow Of short-term
capital from the United States amount
| ing to s765, ,0O0, 900. Moreover, In spite
| Of the tremendous withdrawal of these
short-term funds. foreign deposits here
declined relatively less than American
| credits abroad
Demand for Gold.
During the last quarter Of 1881 the
| United States witnessed the greatest
/ foreign demand on its monetary gold
/ holdings in history When, in May Of
that year, the largest private bank in
Austria failed there began q period OF
| oNhAA- -PoAA4Ss AAkCAloA44C0 Wy tlIC bubpCAl1AO4l
Of gold payments by the Bank Of Eng
land in September. An unprecedented
withdrawal Of bank deposits and short
term investments held by foreigners In
American markets began, but were
promptly and surely met until, within
the past few weeks, the gold with
drawals from the United States had
ceased entirely.
The survey for 1881 covers the worst
part Of the depression up to the present
and includes consideration OF a number
Of developments not known in former
periods Of business decline
The most important part Of any peo-
pies world transactions Is the export
and import Of goods. This "cash book
summary shows that In 1891 the tctal
merchandise exports of the United
States amounted to $2,424, ,00O, 900 and
the total imports $4,000, ,o00, 900. The
balance of 1894, 10000 represents in a
general way the excess credits accumu-
lated throughout the world by the peo-
| pie Of the United States customs areas
as well as of those with which these
balances Of payments are calculated.
(Copyright. 1s32D