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 £50,000 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 commercial policy. As a matter of fact, instead of sending gold and silver out of the country to pay for our excess of imports, we almost every year import considerably more bullion and specie than we export. The actual figures are given in the following table:— THE MOVEMENTS OF BULLION AND SPECIE. In Millions Sterling. ----------------------+----+----+----+----+----+----+----+----+----+---- |1886|1887|1888|1889|1890|1891|1892|1893|1894|1895 ----------------------+----+----+----+----+----+----+----+----+----+---- Imports Gold |12·9|10·0|15·8|17·9|23·6|30·3|21·6|24·8|27·6|36·0 " Silver | 7·5| 7·8| 6·2| 9·2|10·4| 9·3|10·7|11·9|11·0|10·7 Exports Gold |13·8| 9·3|14·9|14·5|14·3|24·2|14·8|19·5|15·6|21·4 " Silver | 7·2| 7·8| 7·6|10·7|10·9|13·1|14·1|13·6|12·2|10·4 +----+----+----+----+----+----+----+----+----+---- Total excess or | | | | | | | | | | deficiency of imports | - | + | - | + | + | + | + | + | + | + over exports of gold | | | | | | | | | | and silver together | ·6| ·6| ·5| 2·0| 8·8| 2·3| 2·4| 3·6|10·8|15·0 ----------------------+----+----+----+----+----+----+----+----+----+---- EXCESS OF IMPORTS OVER EXPORTS.