CHAPTER XIV

THE BALANCE OF TRADE AND OTHER
INTERNATIONAL OBLIGATIONS

[F the last chapter, the point of view was presented that
exports are the payment for imports. This statement
appears to be contrary to fact when we see the figures of
trade of countries like the United Kingdom or the United
States. The former show, for the five years 1898-1902, an
average of 506 million pounds’ worth of imports, and 335
millions of exports, making an excess of imports over
exports of 171 millions, or over 50 per cent. The latter,
for the same period, show imports averaging 189 million
pounds and exports averaging 281 millions, making an excess
of exports over imports of 112 millions, or nearly 67 per
cent. These figures are so large as to compel attention ; but
were the records of other countries examined, a like inequality
in the values of goods imported and exported would be shown.
We proceed to show that this apparent lack of balance
does not mean that the preceding argument is inapplicable.
Imports and exports are, in fact, only in part recorded
in the accounts from which such figures as those given above
are compiled. Thus the imports of the United States are
valued at the prices applicable to them in the country from
which they are brought. The real import is a more valuable
commodity than is recorded. On the other side of the
account is the fact that British ships are engaged in carrying
coods in many parts of the world. Their services are
effectively an export which should be added to the value of
the merchandise which some of them carry. The following
tabular statement shows the various items for which payment
must be made or may be claimed according to circumstances.