Jasper County Democrat, Volume 1, Number 30, Rensselaer, Jasper County, 5 November 1898 — FOREIGN TRADE [ARTICLE]

FOREIGN TRADE

Its Condition Before and After the Act of 1873. By Flavin* J. Tan Vorhl*. The more oarefully the reports of the treasury department are examined, the mote do the figures there given emphasize the intimate relation that exists between our foreign commerce and the money question. The real significance of the figures there given can only be arrived at by computation and comparison. Not every one is inclined to make such careful examination. Every man ought to do so who represents or desires to represent the people, or attempts to discuss the subject. For 25 years there has been an awful draft by foreign trade upon our resources. It can hardly escape attention that there has been a constant loss since 1873, and that the loss has been increasing ever since. There can be no doubt that this annual loss goes to pay interest to foreign holders of onr debts, dividends to foreign holders of our corporation stocks and rents to alien landlordfl This is clearly shown by the tables of annual exports aud imports of merchandise and of exports and imports of gold and silver from 1835 to 1897 to be found in every monthly report except those of May and Jane last. It is worth while, in view of present conditions and the repeated assertions made by certain papers aud speakers that onr foreign trade gives evidence of prosperity, to see what these tables contain. The fiscal year prior to 1843 ended on Sept. 80. Since that date it has ended on Jane 30. Draw a line across the tables between 1873 and 1874, dividing the whole time from September, 1884, to Jane 30, 1893, into two periods. An. estimate of the exports and imports of merchandise and the money metals (gold and silver) during the first period ot 38 years aud nine months will show that the wealth of our country was increased by foreign trade by $557,090,937. This was an average annual increase of over $14,800,000 for the entire time. Daring the last 20 years of the period the net average annual increase oLwealthwas nearly $19,000,000; during ®the last 15 years it was over $28,000,000; during the last 10 years it was over $42,500,000; daring the last five years it was over $55,500,000. Daring the last year, ending June 30, 1873, gain was $57,000^000.

The showing is different for the seoond period of 25 years, beginning Jane 80, 1873, and ending Jane 30, 1898. In stead of onr wealth increasing by foreign trade, we lost daring the time $3,547,087,104. This was a not average annual loss of nearly $142,000,000. Drop out of the calculation five years at a time, beginning with the earliest date, and note the rapidly increasing loss down to the year 1898. During the last 20 years the net average annual loss was nearly $148,500,000. Daring the last 15 years it was nearly $154,500,000. Daring the last 10 years it was nearly $200,000,000. Daring the last five years it was over $286,500,000. During the last year the net loss reached the enormous sum of $535,000,000. In the face of such a showing what comment is necessary ? Prior to Jnne 30, 1873, onr foreign trade brought a gradually increasing balance in onr favor. With onr increase of population and business, onr wealth increased nntil in the last year the excess of imports of merchandise and money metals over exports reached nearly $57,000,000 of balance on onr side of the ledger. In the next, year, ending June 30, 1874, we lost over $67,000,000. In 1875 we sent ont of the country an exoess of over $71,000,000 in gold and silver alone. In 1876 we lost over $120,000,000, of which $40,000,000 was gold and silver; in 1877 over $167,000,000. Between the years 1880 and 1890 there was some decrease in the annual loss, oaused, no donbt, by the beneficial effects of the Bland-Alli-son law. From the year 1890, however, the loss has continued with increasing rapidity, notwithstanding onr great increase in population and business, nntil it has reached its present tremendous proportions. It is difficult for the student of economics and commercial movements to avoid the oonplusion that the difference between the two periods depends upon the demonetization aot passed in 1878, by which Hie destruction ot bimetallic option was oommenoed. What will be the ultimate limit of this foreign demand cannot be oertaiuiy predicted. It is certain that there is not now any tendency to a decrease of the aggregate amount of interest* dividends and rente to be paid each year to aliens. On the contrary, the net excess of merchandise and silver necessary to seenre us any return of gold will, and must, continue to increase with more or lene* regularity until the bimetallic option is restored. How long we will be able to stand this no man can say. Our resources are grant and our productive powers almost unlimited; bnt our foreign trade is but a small part of dor commercial transactions. If this was all the draft upon our industries aud our productions we oould stand it for a long time. If it is true, as we claim, that the destruction of the bimetallic option that has been the governing power and the balance wheel of commerco for more than 1,000 yean has produced this resnlt in onr foreign trade, the same appalling conseqnenoes have fallen upon our domestic transactions and is rapidly oonoentratiug the wraith, of the country in the hands of the creditor classes. If interest on credits and dividends on stooks held in foreign countries and the rents to alien landlords have created so large and ooutinually increasing draft, what must be the magnitude of the aggregate draft caused by interest bn credits, dividends ou stocks and rents on speculative investments held, bv onr own «!«)»

sens ? If the demand* caused "by credits, stocks and speculative investments held at home have increased in the same proportion that the figures show those held abroad to have increased, the time is near at hand when the entire production of the county will not be sufficient to satisfy it. What then? Already, according to intelligent estimates, 250,000 people of the United States own 80 per cent of all the wealth. How much longer can this concentra- . tion of wealth continue before the point is reached when nothing but revolution will stand between our industrial and producing classes and slavery to the holders of wealth? The cohrse that has been pursued since 1861 and still is being pnrsned by the great financial interests and creditor classes, is bringing about a conflict between wealth and production. If the American people desire to remain free they will he compelled to take care of debtors and let the great creditor clashes take care selves. If America institutions are to be perpetuated the policy of this conn-” try mnst cease to be what it now is—to promote speculative schemes for public and private robbery. The policy must be an honest attempt to promote legitimate business interests.