The Pamphlet Collection of Sir Robert Stout: Volume 70
Movements of Capital and Customs' Returns
Movements of Capital and Customs' Returns.
In the old countries of Europe it is impossible to trace the movements of capital by a mere examination of the returns of imports and exports. The complexities of business are so great, the stocks, shares, debentures and other securities passing from country to country, and between Europe and America, represent such vast sums, that whether capital is flowing in or out of a given country in any year is most difficult to determine. These confusions do not exist to any important extent in Australia, and consequently, our returns of imports and exports are a much simpler study.
Exports. | Imports. | Excess. |
---|---|---|
£ | £ | £ |
(1) 20,000,000 | 17,000,000 | 3,000,000 exports |
(2) 20,000,000 | 20,000,000 | — |
(3) 20,000,000 | 23,000,000 | 3,000,000 imports |
While, in actual fact, in the first case the colony exactly pays her way with the outside world, in the second case (though the figures are equal) it increases its indebtedness by three millions, and in the third case (though the excess of imports is only three millions) it yet increases its indebtedness to the extent of six millions. We should bear such facts in mind if we would learn the truth as to the financial position between a colony and the outside world.
page 7All statements as to the aggregate indebtedness of the whole or of any one of these colonies are only estimates. While we can measure the volume of what we have called the "borrowing stream," we cannot, except in a very approximate manner, measure the volume of what we have called the "speculative stream." Hence it is difficult to say what new capital has been obtained by any of these colonies in a given year; the Customs returns do, however, give a fairly clear idea of the amount of new capital actually imported. If the imports exceed the exports by three millions, it is tolerably safe to affirm that new capital to the extent of three millions has come into the colony, while a further supply sufficient to balance the year's interest charges has also been obtained.