Segar. — The Balance of Trade. L79 



of gold, there was an excess of import of gold also to the extent 

 of £170,600,000. But in order to have a period for which we can 

 compare the similar statistics for the other countries we shall 

 take the years 1884-1902, the first of these years being the 

 earliest for which I have the returns of the gold imports and 

 exports for all four countries by me. During this period the 

 United Kingdom had a total excess of imports amounting to 

 £2,456,600,000, and there was also an excess of imports of gold 

 amounting to £91,700,000 ; the United States had a total excess 

 of exports of merchandise amounting to £866,000,000, and 

 likewise an excess of exports of gold amounting to £14,900,000 ; 

 Germany had a total excess of imports of merchandise amounting 

 to £700,700,000, and likewise an excess of imports of gold 

 amounting to £60,700,000 ; and lastly, France had an excess of 

 imports of merchandise amounting to £513,500,000, and likewise 

 an excess of imports of gold amounting to £83,500,000. 



So far, then, are the actual circumstances from justifying 

 the idea that a country is paid for its excess of exports or pays 

 for its excess of imports in gold, that we have found, in the case 

 of the four leading commercial nations, during the recent period 

 of nineteen years, that in the countries where merchandise 

 is imported in excess gold also has been imported in excess, and 

 that the one country which has had an excess of exports of 

 merchandise has also had, on the whole, an excess of export of 

 gold. 



In the case of England, Germany, and France there must of 

 necessity be on the average a predominant import of gold, as 

 these countries produce none themselves, and yet require a 

 certain amount for the expansion and renewal of the coinage, 

 the manufacture of jewellery — a considerable value of which 

 is exported — and for general application in manufactures and 

 the arts. Such an amount of gold as is required for these 

 purposes has to be imported like any other necessary material 

 not produced at home. That the amounts imported by these 

 countries should be so nearly comparable as are the values of 

 the total excesses of imports of gold — namely, £91,000,000, 

 £60,000,000, and £83,000,000— is not then a mere coincidence. 

 The differences between these values and those actually required 

 for the purposes referred to are only small amounts, comparable 

 with those that are imported and exported in periods of two or 

 three years through the ordinary fluctuations of commerce. 

 This constitutes an absolute demonstration from the statistical 

 side alone that these effects are not cumulative — that is, that a 

 nation cannot continue for any but a comparatively short period 

 to have an inflow of gold over and above what is required for 

 use and consumption. 



