CONTENTS

xvii

: PAGES
the best. Some national resources may acquire value only through
foreign trade. International division of labour. Results of improvement
 in the productive efficiency of a country on the terms on which
its foreign trade is conducted. Possible increased real cost of imports,
and conversely for an impediment to production . I0Gg-214

CHAPTER XIV

THE BALANCE OF TRADE AND OTHER INTERNATIONAL
OBLIGATIONS

AUTHORITIES
BASTABLE  *“Theory of International Trade.”
GIFFEN . ““Essaysin Finance” (First Series), ¢ The Excess of Imports.”

Exports do not, apparently, afford an exact payment for imports, as shown
in trade statistics, These records are, in fact, and must be, incomplete.
Composition of mutual indebtedness of trading countries. Imports
involve a payment measured by their value when and where received.
Exports should be valued as at the place and time of export, Trade
returns often based on estimated in place of real values, and do not
iniformly represent the above-named facts. Importance of international
 loan transactions. The momentary condition of indebtedness
largely affected by stock-exchange transactions, Interest on outstanding
 loans, French and English investments abroad. Earnings of
shipping : their importance to Britain. Other services for which payment
 is made and received, Expenditure of tourists. Tributes and
the like. Balances not otherwise offset paid in bullion. Fluctuations
in international loan obligations, The real extent of the credit balance
of the United States. Triangular trade. Apparent trade balances,
however settled. are not settled in money .

« 215-224

CHAPTER XV
THE FOREIGN EXCHANGES
AUTHORITIES
GOSCHEN . The Foreign Exchanges.”
CLARE . . “The ABC of the Foreign Exchanges.”

Payment effected by transfer of obligations, What causes the price of bills
toriseor fall? Modes of expression of the price, Exchange rates affect
profit in trading transactions. What stimulates exports cheapens exchange,
 and zie werd. Influences restricting importation check