THE ALLEGED EXCESS OF IMPORTS.
[TO THE EDITOR OF THE "SPECTATOR."]
Srn.,—A constant reader for over twenty-five years of your valuable paper, but by no means an out-and-out supporter of your views on fiscal policy, I am interested week by week in perusing (I hope with an open mind) the various contributions which are sent to your columns and the com- ments which from time to time you make thereon. But in the Spectator of August 15th there is a letter from Mr. F. Herbert Toyne on the question in which he illustrates his arguments with figures which are sadly inaccurate and mis- leading, and which I am sorry to think you should consider as being most valuable. I refer to his example of a shipment of coal to the United States and a return consignment of wheat. Mr. Toyne makes a statement that the freight on 21,000 worth of coal exported to the United States would amount to 21,500, whereas if he had had any experience of such business he would. know that considerably less than one-half this amount—say only about 2600—would be obtainable on the quantity of coal—say 2,000 tons—which his 21,000 would purchase, and which would, together with the freight, give a selling price in the United States of, say, 21,600, as against his estimate of 22,500. On the other hand, this 21,600 invested in wheat would at present prices purchase about 1,100 quarters, on which the freight at the current rate a the day (Say ltd. per bushel) would amount approximately to 260, as against his estimate of 21,500. We thus have :—
- Coal .(f.o.b.) .21,000 Wheat bought in U.S.A. £1,600
Freight to U.S.A. ... 600 Freight to England ... 60
Belling price in U.S.A. 41,600 £1,660
as against the figures quoted by your correspondent, and thus disposing of his argument on the question of excess imports.
Previous page
