252 
INTERNATIONAL TRADE 
Ey 
Ba 
TRG 
decrease of the physical quantities of the imports and exports. 
Columns 5 and 6 then show in what way the quantity relations of 
different years compare. The year 1900 is taken as the base for 
this purpose, just as it is for the price comparisons. The propor- 
tion of exports to imports — physical quantities — for that year 
1900 is taken as 100. According as the proportion is found to be 
greater or less in another year, the figure is greater or less. The 
figures thus deduced for the several years give an index of changes 
in the gross barter terms of trade. Let it be borne in mind that 
here, as in the figures on net terms, we have nothing which indi- 
cates whether the terms are in themselves favorable for any given 
year. They indicate only the direction and extent of changes. 
There is nothing to show whether the barter terms of trade with 
foreign countries in 1900 gave Great Britain a large or a small 
share of the total divisible gain from foreign trade. But such as 
they were in 1900, favorable or not, it appears that in 1890 they 
were less favorable than in 1900; more of physical exports was 
given for each unit or given assortment of physical imports than 
in 1900. And it appears that in 1910 also the relation was less 
favorable than in 1900; then also more of exports was given in 
exchange for a given quantity of imports than in 1900. 
We have then an index of the gross barter terms of trade. The 
chart on the opposite page shows at a glance the general trends 
from 1880 to 1913. First follow the dotted line, indicating the 
course of the gross barter terms of trade.! The terms of trade be- 
came markedly more favorable to Great.Britain from 1880 until 
1900. During these two decades less and less of exports went 
out in relation to the imports; a given physical quantity of im- 
ports was purchased for a steadily declining physical quantity of 
exports. After 1900 the tendency is the other way; more and 
more of exports are sent out, in comparison to the imports that 
come in. 
The course of the net barter terms is indicated by the unbroken 
1 The figures on which the chart is based are given in detail in Appendix I, p. 411. 
Both for chart and figures, I make use of a paper printed in the Economic Journal, 
March, 1925.