Öffentliche Reise, Verkehrs- und Auskunftsbüros

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Monograph

Identifikator:: 1826870571

URN:: urn:nbn:de:zbw-retromon-221465

Document type:: Monograph

Title:: Öffentliche Reise, Verkehrs- und Auskunftsbüros

Edition:: Ausg. 1929

Place of publication:: Berlin

Publisher:: Büxenstein

Year of publication:: 1929

Scope:: 32 S.

Digitisation:: 2022

Collection:: Economics Books

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512 THE WORK OF THE STOCK EXCHANGE take payment in this form. Yet serious limitations are in practice placed upon the extent to which gold shipments can be employed to right trade balances. In the first place, the amount of gold in the world plus the likely future gold pro- duction today is small in proportion to the debits and credits contracted in terms of gold, and for this reason it is necessary either to restrain the growth of both international and do- mestic business, or to find substitutes for gold payments. Also, gold shipments are in practice attended by some delay, and considerable expense from cooperage, cartage, freight, insur- ance charges, and insurance in transit. Furthermore, since the currency and bank credit of the exporting and importing nations are normally based upon gold, any considerable gold shipments may result in financial deflation in the exporting country and financial inflation in the importing country. This explains the intense “news interest” and public attention which invariably attends gold shipments. These serious deterrents to gold shipments therefore render them a last resort in right- ing trade balances, and practically compel the resort to alter- native methods where these are possible. International Shifting of Bank Credit.—One common alternative to the use of gold shipments in righting interna- tional trade balances is, of course, the shifting of bank credit between nations. This can be done swiftly and inexpensively over the international cables, and it is daily resorted to between nations as a more efficient way not only of righting trade bal- ances but of doing business at all. This use of bank credit in international trade is centuries old, and has developed a very extensive and complex technique of its own. Not since the Middle Ages has it been always necessary in international business transactions to exchange the actual metal money of one country for that of another; instead, dealings in credit in terms of foreign currencies have developed in every important country. This credit usually takes the form of bankers’ bills of exchange.

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