290 INTERNATIONAL TRADE 
two occasions the same combination of crop accidents as in 1879-80. 
In 1890, and in 1896 once more, crops were abundant in the United 
States and deficient elsewhere. Exports of agricultural produce 
swelled. In the first episode (1890-91) the outflow of gold was 
checked; in the second (1895-97) a positive inflow took place. 
Between these fortunate years came the bitter period of depression, 
the desperate and finally successful endeavors by the United States 
Treasury to maintain gold payments, the deliberate importation of 
gold to that end. And when this struggle was over, came again 
a spectacular overturn — not only rapid revival in 1896-97, but 
a sudden great increase of exports during the last years of the 
decade, and with it a great inflow of gold. 
Thruout this decade, still another element affected the inter- 
national transactions — that of the flow of securities between the 
United States and Europe. During the first half, securities moved 
into the United States as European holders became fearful of the 
collapse of the gold standard. During the second half, confidence 
was re-established and heavy payments became due to the United 
States because of the spectacular increase of exports; and then 
securities were again sent to the country! During the earlier 
stage, the sales of securities in the United States promoted the 
large outflow of gold which marked the years 1891 and 1893; dur- 
ing the later, they prevented the inflow from being as large (large 
it remained) as would otherwise have been the case. 
These transactions in securities were as exceptional in character 
as were the other striking events of the decade. Under ordinary 
conditions some sort of regularity and predictability appears in 
this phase of international dealings. It is true that, commonly 
enough, securities move to and fro as a sort of balance-wheel, serv- 
ing for the time being (like the dealings in foreign exchange and the 
international short-time loans) to smooth seasonal payments and 
unexpected- remittances. They also show a long-time trend, ac- 
cording to the stage which has been reached in the position of a 
country as a borrower or lender. But of all these sorts of normality 
1 On the movement of American securities back to the United States in those 
vears see S. v. Waltershausen, Die Handelsbilanz der ver. St. Amerika, p. 51.