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SOME EXPERIENCES UNDER PAPER MONEY 397 
of foreign exchange. A contrast of the same kind appears in the 
price movements, that is, the relative movements, of the do- 
mestic and the in‘Snational commodities. The prices of export 
goods were low (setting aside irregularities caused by crop con- 
ditions) during the period of heavy borrowing and general expan- 
sion, from 1869 until 1873; while they were relatively high after 
1873. The prices of import goods showed a similar drift, tho with 
a lag; they were low during the stage of expansion, especially dur- 
ing its later years, and they were high during the stage of depres- 
sion, again most markedly so during the later years. Domestic 
prices showed movements inverse to those of the international 
goods. They were relatively high before 1873; after the overturn 
of that year they fell more sharply than did either import or export 
prices. 
A tendency similar to that for domestic prices of goods appears 
with regard to money wages, the most important of all the domestic 
prices. In those industries which felt no influence of foreign 
markets or of foreign competition — those, namely, producing 
without foreign competition, and solely for the home market — 
wages showed a distinct upward movement from 1866 to 1873; 
and they showed a sharp decline after 1873. In export industries, 
on the other hand, and in industries subject to compitition from 
imported goods, the movement of wages was virtually nil up to the 
time of the overturn; they showed no such advance as appeared 
in domestic industries. In the ensuing stage of depression, on the 
other hand, their movement, while downward, was much less so 
than in the domestic field. Relatively, they fell during the first 
stage, and rose during the second. 
These phenomena, and more particularly the differences in the 
price. movements of the several classes of commodities, are in 
accord with the theoretical analysis made in Chapter 26. The 
decline in the price of sterling exchange and of the gold premium 
during the years of expansion was the result to be expected from 
the heavy borrowings of that period. Abundant command of 
[onder tiuds was put at the disposal of American borrowers by 
eit ders. Under the impact of these offerings of sterling 
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