Xi.—: England Living on its Capital.

Protectionists represent England as a young prodigal who spends without counting till he is ruined. As a matter of fact England’s position to foreign nations is quite different: far from being a prodigal, she is an old usurer. England’s revenues from foreign countries have gone on increasing:—

The example of the Argentine Republic, cited by the Financial Reform Almanac, is decisive. Between 1888 and 1890 England invested a large capital in South American railway construction. For five years, between 1886 and 1890, England’s exports to Argentina exceeded her imports, £38,177,000 to £12,628,000. Then the railways began to succeed; the balance changed: from 1891 to 1895 English exports fell to £25,300,000, and imports rose to £28,100,000. Between 1896 and 1901 England had only to draw in profit on the railways; exports rose to £37,114,000, imports to £59,000,000.

If foreign purchases were ruining England and depressing trade returns, the Income Tax schedule would bear traces of it. As a matter of fact it proves the contrary. Taking the most prosperous years:—

“England does not live on its capital, but in part on the interest and profit from capital exported to all parts of the world.”