Show IMPORT PAY FOR EXPORTS The goods we bring into this country are the pay for the goods we send out of this country Imports are the psyjfor export Every protectionist is e devout believer In the theory which really amounts to a superstition that the goods brought into this country are paid for in gold and silver so that importing goods drains this country of its money or of its precious metals The statement of the secretary of the treasury for 1S90 shows that our exports of merchandise for that fiscal year amounted to 345293828 In value and that our import im-port of merchandise amounted Co f7S9310409 in value I the goods we e porte did not pay for tho goods we im ported then what did they pay for I But the Republican will explain that since we sent abroad some 35000000 more in goods than we brought back the balance I bal-ance of trade was in our favor to that I amount and we received this balance in I gold and silver The report of the secre ary of tho treasury shows however that I the total importation of gold and silver during I du-ring that year was only 33000000 while t the export of gold and silver was 35000000 Thus we did not receive this II 00 balance in gold and silver but sent an excess of the money metals abroad as well a an excess of merchandise We did not I and never do receive this balance in gold and silver as a merchant may in his private vate business I The men who send this 55000000 excess of goods abroad do not lose this wealth of course though it is lost to the country The senders receive slips of paper representing repre-senting shares in English ship lines or French silk factories or in other foreign enterprises That much wealth ha been consumed In building up foreign enterprises enter-prises and in paying wages to foreign workmen and the American owners of it merely draw the interest on these foreign investments The Republican policy is to discourage by high tariff taxes the importing im-porting of wealth goods into this country coun-try on the theory that i we do this wo shall receive the balance in gold and silver ver I we received this balance in gold and silver the objection t tho Republican policy would not b so great but the reports ports of the bureau of statistics show that we do not receive the balance In gold and silver tho 1S7C have Since year we exported 1050000000 more wealth than we have imported because of the Republican policy of taxing the import of goods on the Uieoru that we would receive the balance in gold and silver That much of our wealth has been driven abroad Into foreign Investments Invest-ments by the Republican policy of taxing imports BO that our exports should exceed oar port a that we should give more thrri we received The Republican theory isthat the more wealth we send abrod the less we receIve i return tl I 0 Y 0 oJ richer we shall become Republicans fear 1 that other nations will make the country a i dumping ground for their surplus wealth that they will flood us with I their and that shall not be cheap goods that we sbal not b I able to stem the tide of the flood of good I things It must not b supposed when we say I imports are the pay for exports that them the-m n whO goods from this country r ceives his pay in the goods of other countries coun-tries That 1 thetfnal result of the transaction saction but it is accomplished by a maze of > transfers and retransfers made by brokers brok-ers Each man sells for hcsh which ia International commerce is merely another name for credit It is a slip of paper a check or letter of credit which he can apply ap-ply to the purchase of goods to bring bak or have it cashed at any great bank or he can invest it in foreign business or bonds This credit is good for its face value in any country in the world and is transferred hourly by Jai or telegraphed from one country to another with perfect safety Thus A in New York sends a cargo of wheat worth tlOOO to London through a London bank he receives a check good for that amount on the New York banks and he draws his money from one of them Then B in London sends a cargo of cloth worth 61000 t this country and receives re-ceives a check for that amount on a London Lon-don bank and draws his money Each bank is thus indebted to the other to the extent of 1000 and the accounts between them are canceled The wheat thus pays for the cloth though it is not directly bartered tered for it When we export more than we import we can bring back the difference in gold and silver but it will not pay us t do that for the purchasing power of gold ad silver is less here than abroad It will pay us to invest It in foreign goods and bring them in or i the government taxes the goods I too heavily It will pay us better to invest the money abroad And this is what wo do > 1as shown by the reports of the bureau of statistics sttstc From 1790 to 1SC9 we imported S99000000 more wealth into this country than we sent out making this country that much richer of course We paid for this In eredit slips of paper called bills of exchange These could best be invested in-vested in the country that issued them so that they were sent back to this country and invested in American railroads the foreign owners drawing only the interest on their investment Since 1S70 under tho Republican policy of keeping out imports wo have sent away 1C50OC0000 more in wealth than we have brought back We were paid for this in cash it is true but not in gold and silver This cash was credit slips of paper which our citizens invested in England Germany Russia and other countries Since 184J wo have also sentabroad 15 000000 of the gold produced in this country and invested the credit received for it in foreign countries We did this because the tariff lowers the purchasing power of gold in this country so that in many lines it pays us best t invest it abroad |