d that 1895, instead of
showing a decline, would show an immense advance. A similar comparison
has been privately worked out in one of the Government offices for the
years 1873 and 1886 with startling results, which I am permitted to
quote. It must be premised that only certain articles are entered in our
returns by quantity as well as by value, and it is therefore only
between these that such a comparison as I have indicated can be made. In
1873, the total declared value of our exports of these articles was 172
millions sterling; in 1886, it was 131 millions, showing an apparent
fall of 41 millions. But if these exports of 1886 had been declared at
the prices of 1873 the total value would have been 215 millions. In this
sense, then, our aggregate trade in these commodities in 1886, instead
of being 41 millions worse than 1873, was 43 millions better. This is
undoubtedly an extreme illustration, for the prices of 1873 were
exceptionally high, and those of 1886 exceptionally low. Nevertheless,
the illustration is most instructive as showing how extremely misleading
it may be to compare values only, without taking account of quantities.
Unfortunately, when we are dealing with the total trade of a country, a
comparison of values is the only comparison possible, for there is no
other common denominator by means of which varied articles--say, steam
ploughs, cotton piece-goods, and patent medicines--can be brought into
our table.

OUR IMPORTS OF GOLD AND SILVER.

To return to our diagram--it may be asked, "How does it happen that
there is such a large and growing excess of imports over exports? Surely
that is a bad sign." On the face of it, why should it be? It only means
that we are, apparently, getting more than we give, and most people do
not in their private relations regard that as a hardship. There are,
however, people to be found who, seeing that we every year buy more
goods than we sell, will jump to the conclusion that we must pay for the
difference in cash. Where we are to get the cash from they do not pause
to think. Hitherto the Welsh hills have resolutely refused to give up
their gold in paying quantities, and as for the silver which we separate
from Cornish lead, it is worth something less than L50,000 a year. The
notion then that we pay for our foreign purchases with our own gold and
silver may be dismissed at once, although a hundred years ago this same
delusion had not a little influence in shaping our com