Year: 1866

Let US do this and we ask no other favor.


TRADE WITH EUROPE


For some time past, gold has been coming
back from Europe to the United States, 1t is
the return of the stream which flowed abroad
in May last during the commercial crisis in
England, and which saved many an English
house from bankruptcy. The favorite expla~
nation for these phenomena, is that the gold
gees abroad to pay debts arising from sug-
plus of imports over exports, and returns for
q similar, but inverse reason. Hence, it is as
sumed that country is richer which exports
more than it imports, as the balance must be
paid for in COMA fallacy which has greatly
contributed to maintain the heresies Of the
protective system. However, without discus
sing this point, which has over, and ever
again been cleared up by the great writer's
on political economy, zTe would simply re-
mark, that She course Of commercial affairs
during the last six months has shown
that gold, like other commodities, tends
10 those places where it is in demand
and FROM those places where it is
in excess. Last May, the high rate Of inter
est prevailing in England attracted gold
thither; much was lent to English houses by
firms on this side, and has since been drawn
against as long as trade in foreign bills yielded
profit. But, lately, exchange has fallen Sc
much that it would entail a loss on the drawer !;
consequently coin must be shipped from
the other side to meet the demand here, and
to restore the equilibrium caused by the fail
in the rate Of interest there. By the rate at
which gold is now coming back, it is evident
that indebtedness to Europe was not the cause
of the shipments in May last The true
causes we have indicated above.


The New York Times thinks that this di-
rection of the gold current will be maintained
for some time yet. One reason given is that
large purchases of fve-tyenties continue to
be made in Europe for investment. -Four
million dollars worth went out on the Sd,
and large orders are daily received through
ment for these will not be made in coin any
longer than it is profitable to export coin foe
that purpose. Soon the supply on this side
would be in excess, and then it would be
more profitable to each party that the pay
ment should be made in foreign goods
articles which are always in demand here,
and which can always be supplied there.


Another reason given by the Times is that
our cotton, soon to go forward will bring
back large supply of gold. But the same
will apply to this product, as to the
five-twenties. Moreover, the Times has form
ed an extravagant estimate of the exportable
Of the crop. That paper says 1--WE
may surely calculate on an export of about
one million bales, which, even at reduced |
.ates. would yield some two hundred and fifty
o three hundred millions in gold" Surely |
he Times must have published this state |
neRt without reflection. At the time of wri-
ing middling was quoted in the New York
market at 32@35c.-say 33c. on the average.
It the same time gold was quoted at 1861
onsequently middling cotton was worth 22I
ents in gold. Estimating bale of cotton at
50 pounds (about the average weight cotton
-ould be worth, by the bale S101 25 per bale,
laling for one million bales the sum of
101, $50, 600 in gold But there is no GER
ainty that the season of 18G6--'67
ill furnish one million bales for export
he largest estimates Of the growing crop.
lade in the South BY well informed persons,
0 not exceed a million and half, and, on
oeount Of the advantage given to the Ameri-
an manufacturer by protective duties and
rawbacks, not more than eight hundred
lousand of that amount would be
pared for export probably not more than
We hundred thousand It is true that the
iminutiop Of the crop below the extrava-
ant estimates formed at the North and in
England will probably materially raise the
rice, but not enough to. cause the receipts to
pproXimate even to the sum named by the
Zines. Moreover, the whole amount would
.ot come back in coin. Much-indeed the
most of it-would be returned in goods, for
'hich we have far more use than for gold If
aw-makers would only let the gold and all
ther commercial commodities take care Of
we should have fewer financial
rises, and far more real wealth in the
ountry than We have now.


--s-e.- - 5sas-
Missouri SOUTHERN RELIEF ASSOCIATION.