X Vill 
CONTENTS 
PAGES 
of trade, 247. Gross terms of trade less favorable in 1890 and 
1910 than in 1900, 251; net barter terms show similar trend, 
252. Direction of the changes consonant with theory, 256. 
Contrast with the case of Canada, 257; net and gross barter 
terms of trade more favorable after 1900, 258. Relation of gold 
flows, circulating medium, and prices more complex in Great 
Britain than in Canada, 259. Closeness of the connection 
between international payments and commodity movements 
1s perplexing, 260. 
. CHAPTER 22 
TE FrANCO-GERMAN INDEMNITY oF 1871 
Amount and character of the indemnity, 263. How the 
funds for meeting it were raised in France. How they were 
transferred to Germany, 265. Part played in the transfer by 
French foreign investments, 266. The French experience in the 
transfer of securities not applicable to heavy payments of a non- 
political character. The German government's utilization of 
the indemnity payments, 268. The economic effects; sustained 
inflow of specie; expansion of circulating medium and sharp 
rise in prices in Germany, 269. German part of the transaction 
spread over many years, and its effects difficult to unravel, 272. 
How does the mechanism of international payments function 
when there are exceptionally heavy payments to be made? 273. 
Adam Smith’s explanation unsatisfactory, 274; Ricardian 
explanation does not tell the story, 275. Explanation suggested 
by German experience in the 70’s, 276. A possible explanation 
for the Napoleonic period, 277. Importance of the time element 
in the processes of international payments again considered, 278. 
263-278 
CHAPTER 23 
THE Untrep States, I. UntIL 1900 . 
The balance of trade before and after 1873, 280. Sudden 
reversal with the crisis of that year, 282. Chaotic banking and 
monetary systems before 1860 complicate the analysis, 284. 
From 1860 to 1879 the mechanism contemplated in the Ricardian 
theory could not operate, the case being one of trade under dis- 
located exchanges, 285. Even after return to the gold standard, 
analysis is obscured by increasing domestic gold supply; by 
crop alternations, 287; by silver issues, 289; by irregular move- 
ments of securities, 290. 
+ 
280-291