186 ANALYSIS OF THE TERMS OF 
exports after that date, gold is flowing out freely when we should 
look for its retention. Nothing in the theory of international 
trade accounts for the anomalies ; and we are forced back upon 
the double effect of external borrowing and internal inflation, 
coupled with the embargo upon gold export, for a satisfactory 
explanation. 
TasLE XLI 
Gold Movements and Imports of Capital, 1915-281 
Year. 
1915 
1916 | 
1917 
1918 
1919 
1920 
1921 
922 ! 
1923 | 
(924 
1925 
1926 
1927 | 
19928 
Gold 
production. 
£m. 
8-270 
7-076 
6-185 
5-408 
3-454 
5-494 
1.018 
3-645 
3-161 
3-144 
2-376 
2-214 
2-159 
1-939 
Stocks. 
£m. 
64-134 
70-364 
87-462 
61-904 
61-575 
84-910 
63-816 
32-389 
51-220 
51-1 
50-494 
71-369 
68-8156 
58-06 
Imports. 
£m. 
0-868 
0-780 
0-272 
1-652 
7-071 
0-046 
0-020 
0-043 
0-031 
0-062 
10-5643 
0-421 
0-589 
1-008 
Exports. 
£ am, 
2-908 
10-758 
12-015 
7-389 
9-180 
5-634 
5-465 
4-877 
3-301 
3-812 
2-043 
5-489 
12-303 
2.740 
Retained. 
£m. 
6-230 
— 2-902 
— 5-558 
—0-329 
3-335 
—1094 
—1-427 
1-289 
—0-119 
—-0-606 
10-876 
— 2-854 
—9-5565 
—0-793 
New loan. 
£m. 
5-1 
4-3 
18-6 
20-9 
0-5 
10-8 
11-3 
42-2 
39 
48-1 
0-1 
37-5 
11-8 
54-3 
Borrowing and the exigencies of war-time finance between 
them forced Australian overseas trade during this period into 
new channels. The inability of Europe, and of Great Britain 
in particular, to supply in the old way either the capital or 
consumption goods which Australia required, together with the 
swelling indebtedness of Great Britain to the United States, 
were responsible for the development of a trade relation among 
these three countries that has been widely misunderstood. 
The raising of great Australian loans in London during the war 
became possible only through the huge credits placed at the 
disposal of Britain by the United States. The chain was com- 
pleted as far as the Commonwealth was concerned by America 
furnishing a proportion of Australian imports many times 
* Commonwealth Year Books, Nos. 10-21, and Quarterly Bulletins of Statistics, 
Nos. 85-115.