CONTENTS 
CHAPTER XV. ANALYSIS OF THE TERMS OF TRADE BETWEEN 
1914 AND 1928 . . v . . ’ 7 . 183 
Mechanism of trade during and after the war—gold movements extraordinary— 
new trends to be discerned in Australian overseas trade~mechanism of war-time 
inflation—the effects of deflation. 
CHAPTER XVI. THE BALANCE OF INDEBTEDNESS, 1918 TO 1928 193 
Changes in overseas trade further examined—the commodity balance—effect of 
borrowing upon imports and exports respectively—the function of imports in 
maintaining equilibrium—restrictive effect of borrowing upon exports—changes 
in direction of trade—effect of borrowing upon proportions of capital and consump- 
tion imports—freight, insurance and tourist expenditures—overseas interest pay- 
ments—capital imports compared with the difference between international debits 
and credits. 
CHAPTER XVII. ECONOMIC EFFECTS OF THE RETURN TO GOLD 
IN 1925 ’ . . . 214 
The situation at the moment of the decision to return to gold—reactions upon 
business in Australia—the steps in the return—deflation disguised—untoward 
factors in the Australian situation—tests of adverse reactions applied—the rationing 
of loans in Britain and the Australian response. 
CHAPTER XVIII. ECONOMIC EFFECTS OF CONTINUOUS BORROW- 
ING * . . . . 225 
Arguments in justification of extensive governmental borrowing programmes—the 
real tests of effective application of capital—the effects of unrestricted loans upon 
living standards and national ways of thought—the essential weakness of the loan 
situation found in credit control—measurement of effectiveness in capital invest- 
ment. 
CHAPTER XIX. THE IMMEDIATE FUTURE IN RELATION TO 
CAPITAL REQUIREMENTS ” . . 241 
Shortage of capital supplies after the war—probable economic effects of a stoppage 
of loans—the impact on living standards—necessity for expanding exports—the 
position of primary and secondary industries when capital imports cease—reversal 
of all the functions of the borrowing cycle—Britain’s diminished capacity to lend— 
possible amelioration through increase of population—disharmony between tariff 
and borrowing policies—the financial policy of the future—the inevitable necessity 
for repayment—need for scientific control of borrowing—conclusion. 
APPENDIX 7 . . 
BIBLIOGRAPHY 
INDEX . 
3710