International trade

Bibliographic data

Monograph

Identifikator:: 881661368

URN:: urn:nbn:de:zbw-retromon-3236

Document type:: Monograph

Author:: Goldberger, Ludwig Max http://d-nb.info/gnd/117548804

Title:: Das Land der unbegrenzten Möglichkeiten

Edition:: Achte Auflage

Place of publication:: Berlin

Publisher:: F. Fontane & Co.

Year of publication:: 1911

Scope:: 1 Online-Ressource (299 Seiten)

Digitisation:: 2017

Collection:: Economics Books

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Kapitel XIV. Kritik des Trustwesens

Collection:: Economics Books

126 INTERNATIONAL TRADE HT a changes, flow of specie, and so on. The balance of trade becomes at once “favorable” to the lending country, and “unfavorable” for the borrowing country. There is no disturbance of foreign exchange, no flow of specie, nothing to modify the level of prices or wages either in the lending or in the borrowing country. It is extremely rare, however, that the purchases of goods in the lending countries by the selfsame foreigners who contracted the loans take place to such an extent as to obviate the flow of specie completely. Not the entire proceeds of loans are likely to be spent in this way, only some fraction. Even if railway promoters from the United States or Canada or Argentina, who borrow in England, also buy railway material in England, they are likely to use in this way only a part of the funds. Some part they will spend at home, for labor, for miscellaneous supplies, divers ex- penses. It is conceivable, nay probable, that they will raise some portion of their capital at home, and only the residue abroad. And it is then conceivable that they will use for domestic expendi- tures the funds raised at home, and will use the proceeds of foreign loans entirely for purchase abroad. But it is most improbable, even when there is a division between foreign and domestic financ- ing, that an exact balance of this sort will be struck. In the majority of cases a part of the foreign funds, and usually a con- siderable part, will be wanted for expenditure in the borrowing country itself. Then, to repeat, the outcome must be a flow of specie from the lending to the borrowing country. Remittances will have to be made, in our illustrative situation, from London to New York. Specie will flow; the consequences become the same as those which ensue when remittances have to be made for any other invisible item. These consequences will of course ensue quite without modifica- tion if there be no immediate purchases of goods at all in the lend- ing country. Such was doubtless the case with a large proportion of the British loans both of earlier and later date. It was so with the continuous stream of loans by the French in those earlier loans of the second and third quarters of the 19th century, made when neo-mercantilism was not yet rampant. The transactions were

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