X.—: The Drain of Gold and the Balance of Trade.

In 1902, Mr. Seddon, the Australian Prime Minister, made himself famous by the following statement in a speech he made in London: “The excess of your imports costs you yearly 200,000,000 gold sovereigns.”

The facts are so well known that this delightful statement caused an outburst of laughter. Even during the Transvaal War England imported more gold than she exported:—

And yet the old Protectionist shibboleths of beneficent exports and ruinous imports were uttered again. Taking the calculation of the Balance of Commerce made by Mr. Robert Barclay, former President of the Manchester Chamber of Commerce, allowing 20 per cent. to cover insurance and freightage on English exports, and subtracting 10 per cent. from imports, we find:—

England gains by imports as well as exports, consequently, far from wanting them to decline, she should desire their advance.