British Commerce (Marx, 1858)

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During the late extraordinary session of the British Parliament, Lord Derby declared in the House of Lords that, for the last three years the value of British imports had exceeded that of British exports to the amount of £160,000,000. This statement gave rise to a controversy, out of doors, some private individuals applying to Lord Stanley of Alderley, President of the Board of Trade, for information as to the correctness of Lord Derby's statement. The President of the Board of Trade, in a letter addressed to his interrogators, replied:

"The assertion made by Lord Derby in the House of Lords, that the value of our imports during the last three years had exceeded that of our exports by £160,000,000, is incorrect, and arises from Lord Derby having taken the total value of our imports, including our imports from the Colonies and foreign countries, while he has excluded the re-export of merchandize which has been received from the Colonies and foreign countries. Thus Lord Derby's calculation shows:

"	Importations	£468,000,000
	Exports	308,000,000
	Difference	£160,000,000
	Whereas it should be:
	Importations	£468,000,000
	Exports	371,000,000
	Difference	£97,000,000	"

The President of the Board of Trade substantiates this assertion by adding to it a comparative statement of the value of the exports and imports of the United Kingdom during the years 1855, 1856 and 1857. This highly interesting document, which is not to be found in the London newspapers, we reprint below. First it will be seen that the case might be put in a shape confirmatory of Lord Derby's assertion, viz.:

Total imports	£468,000,000
British exports	308,000,000
Excess of imports over British exports	£160,000,000
Re-exports of foreign produce	63,000,000
Balance of trade against Great Britain	£97,000,000

Thus, there is actually an excess of foreign imports over British exports of 160,000,000, and after the re-export of 63,000,000 of foreign productions, there remains a balance of trade against Great Britain, as stated by the President of the Board of Trade himself, of 97,000,000, or more than 32,000,000 for the average of the three years, 1855, 1856, and 1857. Hence, the recent complaint of The London Times:

"The actual losses sustained by the nation have been going on for the last five or six years, and it is only now that we have found them out."

These losses, however, arise not from the excess of imports over exports, but from the specific character of a great part of the exports.

The fact is, one-half the re-exports consists of foreign raw materials used in manufactures serving to increase foreign rivalry against the British industrial interests, and, to some extent, returned to the Britishers in manufactured goods for their home consumption. The decisive point, however, to be kept in view, is this, that the large re-exports of raw materials, resulting from the competition of Continental manufactures, enhanced the price of the raw material so much as almost to absorb the profit left to the British manufacturer. On a former occasion, we made some statements in this sense with respect to the British Cotton industry.

As at the present moment the industrial crisis rages most violently the British Woolen districts, where failure follows upon failure, anxiously concealed from the general public by the London press, it may be opportune to give at this place some figures showing into what effective competition for raw wool the manufacturers of the European Continent were entering with the British onesa competition which led to the unparalleled enhancement in the price of that raw material, ruinous to the manufacturer, and fostering the now blown-up speculations in that article. The following statement comprises the first nine months of each of the last five years:

Imports

Years	Foreign	Colonial	Total
1853	£37,586,199	£46,277,276	£83,863,475
1854	27,006,173	50,187,692	77,193,865
1855	17,293,842	53,896,173	71,190,015
1856	22,377,714	62,148,467	84,526,181
1857	27,604,364	63,053,100	90,657,464

Year	Foreign	Colonial	Total
1853	£2,180,410	£5,243,166	£7,723,576
1854	5,993,366	13,117,102	19,110,468
1855	8,860,904	12,948,561	21,809,465
1856	5,523,345	14,433,958	19,957,303
1857	4,561,000	25,068,787	29,629,787

The quantities of foreign and colonial wools returned for British home consumption appear, therefore, to have been, in the years:

Wool

Year.	Pounds.
1853	76,139,899
1854	58,083,397
1855	49,380,550
1856	64,568,878
1857	61,027,677

On the other hand, the quantities of British home-grown wool exported were:

1853	lb 4,755,443
1854	9,477,396
1855	13,592,756
1856	11,539,201
1857	13,492,386

By deducting from the quantity of foreign wools imported into the United Kingdom, first the quantity re-exported and next the quantities of English wools exported, we find the following real quantities of foreign wool available for British home consumption:

1853	lb 71,384,456
1854	48,606,001
1855	35,787,794
1856	53,029,677
1857	47,535,291

While, therefore, the import into the United Kingdom of colonial wool increased from 46,277,276 lbs. in the first nine months of 1853 to 63,053,100 lbs. in the same period of 1857, and the total imports of all kinds from 83,863,475 lbs. to 90,657,464 lbs. during the same respective periods, such, in the mean time, had been the increase in the demand for the European Continent, that, in regard to the foreign and colonial wools, the quantities returned for British consumption diminished in the five years from 76,139,899 lbs. in 1853 to 61,027,677 lbs. in 1857; and taking into account the quantities of English wools exported, there took place an aggregate reduction from 71,384,456 lbs. in 1853 to 47,535,291 lbs. in 1857. The significance of these statements will be better understood when attention is called to the fact avowed by The London Times, in a money article, that, simultaneously with this increase in the export of wool from the United Kingdom, the import of Continental woolen manufactures, especially French ones, was increasing.

From the figures furnished by Lord Stanley of Alderley we have abstracted the following tabular statement, showing the degree in which the balance of trade with Great Britain was favorable or unfavorable to different countries:

Balance of Trade against England
for 1855, 1856. 1857.

1.	United States	£28,571,764
2.	China	22,675,433
3.	East Indies	19,605,742
4.	Russia	16,642,167
5.	Prussia	12,842,488
6.	Egypt	8,214,941
7.	Spain	7,146,917
8.	Br. West Indies	6,906,314
9.	Peru	6,282,382
10.	Sweden	5,027,934
11.	Cuba & Porto Rico	4,853,484
12.	Mauritius	4,672,090
13.	New-Brunswick	3,431,303
14.	Denmark	3,391,144
15.	Ceylon	3,134,575
16.	France	2,696,291
17.	Canada	1,808,454
18.	Norway	1,686,962
19.	Africa (Western)	1,432,195
20.	Portugal	1,283,075
21.	Two Sicilies	1,030,139
22.	Chili	693,155
23.	Buenos Ayres	107,676

Balance of Trade in favor of England
for 1855, 1856, 1857.

1.	Hanse Towns	18,883,428
2.	Australia	17,761,889
3.	Turkey	6,947,220
4.	Brazil	7,131,160
5.	Belgium	2,214,207
6.	Holland	1,600,904
7.	Cape of G. Hope	59,661

The simple fact of the excess of British imports over exports, amounting in three years to £97,000,000 would by no means warrant the cry now raised by the Britishers "of carrying on their trade at a yearly sacrifice of £33,000,000," and benefiting by that trade foreign countries only. The enormous and increasing amount of British capital invested in all parts of the world must be paid for in interest, dividends and profits, all of which are to be remitted to a great extent in the form of foreign produce, and consequently go to swell the list of British imports. Beyond the imports corresponding to their exports, there must be a surplus of imports, remitted not in payment for commodities, but as revenue of capital. Generally speaking, the so-called balance of trade must, therefore, always be in favor of the world against England, because the world has yearly to pay to England not only for the commodities it purchases from her, but also the interest of the debt it owes her. The really disquieting feature for England of the statements above made is this, that she is apparently at a loss to find at home a sufficient field of employment for her unwieldy capital; that she must consequently lend on an increasing scale, and similar, in this point, to Holland, Venice and Genoa, at the epoch of their decline, forge herself the weapons for her competitors. She is forced, by giving large credits, to foster speculation in other countries in order to find a field of employment for her surplus capital, and thus to hazard her acquired wealth in order to augment and conserve it. By being obliged to give large credits to foreign manufacturing countries, such as the Continent of Europe, she forwards herself the means to her industrial rivals to compete with her for the raw produce, and thus is herself instrumental in enhancing the raw material of her own fabrics. The small margin of profit thus left to the British manufacturer, still reduced by the constant necessity for a country the very existence of which is bound up with the monopoly of forming the workshop of the world, constantly to undersell the rest of the world, is, then compensated for by curtailing the wages of the laboring classes and creating home misery on a rapidly-enlarging scale. Such is the natural price paid by England for her commercial and industrial supremacy.

A Comparative Statement
of the Value of the Imports and Exports of the United Kingdom
from and to the Principal Foreign Countries
and British Possessions in 1854, 1855, and 1856.

		IMPORTS.	VALUE OF EXPORTS.
Countries.	Years.	Computed real value of Imports.	Declared Value of Produce of the United Kingdom.	Computed Real Value of Foreign & Colonial Produce.	Total.
		£	£	£	£
Foreign
Russia	1854	4,252,288	54,301	19,738	74,039
	1855	478,169	...	...	...
	1856	11,561,924	1,595,237	1,775,617	3,370,854
Sweden	1854	2,509,539	334,518	249,792	584,310
	1855	2,325,171	545,384	279,515	824,899
	1856	2,031,861	629,697	300,795	930,492
Norway	1854	1,369,440	402,290	106,244	508,534
	1855	1,099,642	487,400	102,551	589,951
	1856	947,934	488,489	143,080	631,569
Denmark	1854	2,706,186	758,228	230,010	988,238
	1855	3,086,979	756,967	260,624	1,017,591
	1856	2,201,831	1,033,142	352,173	1,385,315
Prussia	1854	9,055,503	798,434	1,717,285	2,515,719
	1855	10,242,862	1,100,021	2,016,650	3,116,671
	1856	4,534,815	933,715	624,908	1,558,623
Hanse Towns	1854	6,221,524	7,413,715	2,720,274	10,133,989
	1855	4,816,298	8,350,228	3,344,416	11,694,644
	1856	5,302,739	10,134,813	3,260,543	13,395,356
Holland	1854	6,731,141	4,573,034	2,320,877	6,893,911
	1855	6,460,932	4,558,210	2,611,767	7,169,977
	1856	7,433,442	5,728,253	2,434,278	8,162,531
Belgium	1854	3,631,161	1,406,932	1,948,740	3,355,672
	1855	2,533,732	1,707,693	2,239,514	3,947,207
	1856	2,936,796	1,689,975	2,323,042	4,013,017
France	1854	10,447,774	3,175,290	3,21.6,175	6,391,465
	1855	9,146,418	6,012,658	4,409,223	10,421,881
	1856	10,386,522	6,432,650	4,038,427	10,471,077
Spain	1854	3,594,501	1,270,464	165,642	1,436,106
	1855	4,799,728	1,158,800	135,192	1,293,992
	1856	3,645,083	1,734,483	377,820	2,112,303
Cuba and Porto Rico	1854	3,369,444	1,073,861	4,727	1,078,588
	1855	2,332,753	1,077,745	22,933	1,100,678
	1856	2,654,580	1,398,837	25,190	1,424,027
Portugal	1854	2,101,126	1,370,603	148,997	1,519,600
	1855	1,962,044	1,350,791	184,580	1,535,371
	1856	2,164,090	1,455,754	433,470	1,889,224
Two Sicilies	1854	1,411,457	563,033	109,258	672,291
	1855	1,281,940	921,220	175,221	1,096,441
	1856	1,505,582	1,202,183	197,925	1,400,108
Turkey Proper	1854	2,21,9,298	2,758,605	317,476	3,076,081
	1855	2,294,571	5,639,898	419,119	6,059,017
	1856	2,383,029	4,416,029	291,991	4,708,020
Egypt	1854	3,355,928	1,253,353	113,895	1,367,248
	1855	3,674,682	1,454,371	117,235	1,571,606
	1856	5,753,518	1,587,682	43,151	1,630,833
United States (including California)	1854	29,795,302	21,410,369	923,034	22,333,403
	1855	25,741,752	17,318,086	744,517	18,062,603
	1856	36,047,773	21,918,105	698,772	22,616,877
Brazil	1854	2,083,589	2,891,840	119,982	3,011,822
	1855	2,273,819	3,312,728	128,550	3,441,278
	1856	2,229,048	4,084,537	179,979	4,264,516
Buenos Ayres	1854	1,285,186	1,267,125	32,565	1,299,690
	1855	1,052,033	742,442	26,383	768,825
	1856	981,193	998,329	43,892	1,042,221
Chili	1854	1,380,563	1,421,855	43,589	1,465,444
	1855	1,925,271	1,330,385	56,688	1,387,073
	1856	1,700,776	1,396,446	64,492	1,460,938
Peru	1854	3,138,527	949,289	22,236	971,525
	1855	3,484,288	1,285,160	60,278	1,345,438
	1856	3,048,694	1,046,010	26,154	1,072,164
China (including Hong Kong)	1854	9,125,040	1,000,716	26,400	1,027,116
	1855	8,746,590	1,277,944	26,052	1,303,996
	1856	9,421,648	2,216,123	70,611	2,286,734
W. C. of Africa (exclusive of Br. & Fr. Pos.)	1854	1,528,896	646,868	174,073	820,941
	1855	1,516,729	839,831	219,827	1,059,658
	1856	1,657,375	666,374	223,842	890,216
Total Foreign Countries	1854	118,239,554	63,800,605	15,645,612	79,446,217
	1855	109,959,539	69,524,475	18,710,749	88,235,224
	1856	129,517,568	83,327,154	20,035,442	103,362,596
British Possessions
Canada	1854	4,007,052	3,957,085	180,569	4,137,654
	1855	2,296,277	1,515,823	90,298	1,606,121
	1856	3,779,741	2,418,250	123,591	2,541,841
New-Brunswick	1854	2,079,674	863,704	40,273	903,977
	1855	4,379,041	370,560	27,718	398,278
	1856	1,891,707	572,542	34,322	606,864
British West India Islands	1854	3,977,271	*1,870,674	166,690	2,037,364
	1855	3,978,278	1,389,992	136,022	1,526,014
	1856	4,157,098	1,462,156	180,799	1,642,955
British Guiana	1854	1,636,267	...	31,779	31,779
	1855	1,491,935	421,398	35,189	456,587
	1856	1,418,264	411,241	41,248	452,489
British Settlements in Australia	1854	4,301,868	11,931,352	1,474,634	13,405,986
	1855	4,500,200	6,278,966	942,659	7,221,625
	1856	5,736,043	9,912,575	1,759,814	11,672,389
British East Indies	1854	10,672,862	9,127,556	493,154	9,620,710
	1855	12,668,732	9,949,154	404,321	10,358,475
	1856	17,262,851	10,546,190	478,328	11,024,518
Ceylon	1854	1,506,646	382,276	31,228	413,504
	1855	1,474,251	305,576	20,321	325,897
	1856	1,304,174	388,435	22,660	411,095
Mauritius	1854	1,677,533	383,210	17,936	401,146
	1855	1,723,807	303,173	14,772	317,945
	1856	2,427,007	420,180	16,977	437,157
Cape of Good Hope & Brit. Pos. in S. Afr'a	1854	691,352	921,957	63,309	985,266
	1855	949,640	791,313	45,437	836,750
	1856	1,502,828	1,344,338	73,127	1,417,465
Total of British Possessions	1854	34,149,499	33,384,121	2,990,754	36,374,875
	1855	33,583,311	26,163,610	2,292,466	28,456,076
	1856	43,026,586	32,499,794	3,357,963	35,857,757
Total ForeignCountries and Br. Posses'ns.	1854	152,389,053	97,184,726	18,636,366	115,821,092
	1855	143,542,850	95,688,085	21,003,215	116,691,300
	1856	172,544,154	115,826,948	23,393,405	139,220,353

* Including British Guiana.