Britain have been, more than one-fifth of the whole amount for fifteen years past has gone to pay for foreign bread.

Bread, however, is only one of the articles for which England is largely dependent on other nations. By reference to Table G, it will be seen that her mean annual importation of articles of food for home-consumption, for the years 1858 and 1859, amounted in value to $260,437,590; notwithstanding the fact (see Table F), that the mean annual importation of breadstuffs in those two years was $15,578,630 less than it was in the five years which ended with 1860. In addition to this, England imported, during those two years, miscellaneous articles to the annual amount of $86,918,395, and manufactures to the amount of $31,714,477; making the annual aggregate of her imports of merchandise for home-consumption, exclusive of articles used in manufac tures, no less a sum than $379,070,462.

From Table G, it further appears, that the annual importations into Great Britain, for the same years, of articles to be used in manufactures, - that is, raw materials, and articles partially manufactured, · amounted in value to $359,206,333. Some portion

-

of these articles is used in manufactures for the home-trade. Another, and much the larger part of them, is employed in manufactures which are exported. There are no means of determining the exact proportions devoted to each use; but an approximate estimate, founded on our tables,' shows that about three-fourths of the whole are employed in manufactures designed for exportation; that is, $269,404,750 worth of these articles belonging to this class, and only $89,801,583 to the domestic trade. If to the sum of $379,070,462 the value, as before given, of articles imported for

home-consumption ·

we add the $89,801,583, we have the sum of $468,872,045 as the annual amount of subsistence for which England is dependent on other countries.

How does she manage to pay for an importation so large? From the nature of the case, we might safely say that her own indigenous resources would fall far short of furnishing the necessary means. But, on this point, we are not left to conjecture or to inference. In the figures of Table H, we have all the British exports which can be regarded as purely of native origin.

1 Mr. Mann's Table (No. 103 of the Appendix) shows that the mean annual consumption of cotton for the home-trade of the United Kingdom, in 1858 and 1859, was 234,299,764 pounds; which, at the average cost of 14 cents per pound, gives $33,551,726 as its value.

From Mr. Redgrave's statement (No. 108, p. 199, of the Appendix), it appears that Great Britain consumes eighty-four per

cent of her silk-manufactures. Eighty-four per cent of the $30,131,670 worth of raw silk imported gives $25,310,602 as the proportion for home-use. These two sums make, together, $58,862,328; to which I add $30,939,255, as the estimated portion of the other articles employed in the home-trade; making an aggregate of $89,801,583.

The Mean Annual Imports of the United Kingdom of Great Britain in 1858 and 1859, classified with a View to show her Dependent Condition.

The Amounts given are those remaining for Home Consumption after deducting the Re-exportations.

TABLE H.

The Mean Annual Value of the Exports of the United Kingdom of Great Britain, derived from, or based on, Products of her Home Territory in 1858 and 1859.

If we deduct $153,611,785, the total amount of this class of exports, from $468,872,045, which expresses, as above stated, the total amount of England's dependence on other countries, there remains the sum of $315,260,260 to be met by means which lie outside of her indigenous resources.

The question, therefore, returns: How does England meet this large indebtedness! I answer, that, to a limited extent, she pays it from the profits of exchanges, — prófits which are due to her control of capital, and to her commanding position as the financial centre, the great settling-house, of the commercial world. The profits also which she makes by the carrying-trade, and by importing and re-exporting foreign and colonial merchandise, have no inconsiderable share in the result.' Her mean annual re-exportations of foreign and colonial merchandise in 1858 and 1859 amounted to $121,138,672.2. But the chief resource of England, in this regard, is yet to be named. For the means

1 "Whether as regards foreign raw materials or foreign luxuries, England has been enabled, by the security of her laws, the enterprise and character of her merchants, her command of capital, her enlightened commercial policy, and in other modes, not merely to import the quantities required for her own use, but

to become the intermediate dealer between the countries which actually produce and the countries which actually consume considerable portions of these exotic commodities."— Tooke's History of Prices, vol. 6, p. 211.

* See Appendix, No. 33.

to meet her foreign liabilities, she relies mainly, and, so far as now appears, always must rely, on the application of her labor and capital to the raw materials she imports, and on the profitable sale, in other countries, of the manufactured products.

For the better understanding of these facts and results, I repeat them in a summary statement.

• Only consumable commodities are included in this statement. The mean annual imports of coin and bullion during the two years to which it refers amounted to $166,408,365, while the exports were only $138,294,200: making the excess of imports, $28,114,165. This, added to the $120,726,082, makes the balance, or excess of imports over exports, $148,840,247. - -See Appendix, Nos. 37 and 38.

The extent to which the imports of Great Britain exceed her exports is quite remarkable. In 1858 and 1859, - the two years referred to in the above statement, the mean annual amount of total imports (not including coin and bullion) was officially

1 For the seven years ending 1860; the excess of British im. ports over exports (exclusive of coin and bullion, which, if added, would increase the excess) amounted, in the aggregate, to $1,158,409,375.- See Appendix, No. 36.

In France, the reverse of this obtained. In the seven years which ended with 1854, the excess of her exports over imports (not including coin and bullion) was $402,000,000. — See Appendix, Nos. 83 and 86.

In the United States, reckoning from the beginning of the government, the aggregate excess of imports over exports (inclusive of coin and bullion) is $700,420,245; but, if we take only the seven years ending 1860, we find the exports exceed the imports by $91,223,339. See Appendix, No. 11.

reported at $859,415,467, while the amount of total exports was $738,689,385; making the excess of imports, $120,726,082.

This balance of $120,726,082 I have included in the preceding statement of exports; as it represents an amount of foreign indebtedness, real or apparent, which must, in some way, be cancelled. In other words, according to the returns of the custom-house, the recorded value of the imports exceeds, by that sum, the recorded value of the exports; thus showing a foreign debt of that amount. That this debt is, to a certain extent, only apparent, may be inferred from the fact, that the valuation of exports is made before the expenses of exportation are incurred; while the value of imports is not estimated until after their cost has been enhanced by the expenses of freight, insurance, commissions, &c. This fact undoubtedly accounts, in part, for the difference between the two amounts; and, to this extent at least, what appears by the custom-house record as a foreign debt is only the profit which accrues to those who are directly or indirect concerned in the foreign trade.1

It is, morcover, quite probable that this balance, or debt, - call it what you will, -looks larger than it really is, in consequence of the imports being over-valued.2 Whatever portion of the sum is actual debt to be paid, the only means applicable to the purpose, so far as the records of trade and the custom-house furnish any information, are the profits on $121,138,672 (being the amount of foreign and colonial produce which is imported and re-exported), and the profits, already mentioned, of exchanges, the carrying-trade, &c. Take what view we may of this somewhat mysterious balance, facts already stated make it perfectly clear that England is dependent on other countries for articles essential to her subsistence, and beyond the means of payment afforded by her own native products, to an annual amount of more than $300,000,000.

1 "The value of an exported commodity is estimated at the moment of its being sent abroad, and before its cost is increased by the expense of transporting it to the place of its destination; whereas the value of the commodity imported in its stead is estimated after it has arrived at its destination, and, consequently, after its cost has been enhanced by the expense of freight, insurance, importers' profits, &c. It is, therefore, abundantly clear, that, except on extraordinary occasions, the value of the imports must be decidedly greater than the exports. . . . And it is plain that this excess, whatever it may be, forms the only fund whence the expenses and profits of the merchants can be derived. The larger, consequently, it becomes, the more it will be for their advantage.". - Mc Cullock's Dictionary, under “Balance."

2 "Since 1798, exporters have been made to declare, in every case, the real value of the articles which they export; but, until recently (1854), no authentic information was obtained in regard to the value of the imports. It is needless to enter into any minute details with respect to the mode of computing the value of imports. It is sufficient to state, that it is effected by ascertaining the current prices of important articles from price-currents, mercantile circulars, &c., and from these deducing the average value of each. It would be idle to suppose that results derived from a process of this sort should be altogether exact; but the errors it involves are of no great moment, and, for statistical purposes, may be reckoned quite correct and most valuable."— Mc Culloch's Dictionary, under “Balance."