International trade

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Monograph

Identifikator:: 1758394757

URN:: urn:nbn:de:zbw-retromon-136209

Document type:: Monograph

Author:: Taussig, Frank William http://d-nb.info/gnd/120199459

Title:: International trade

Place of publication:: New York, NY

Publisher:: Macmillan

Year of publication:: 1927

Scope:: XXI, 425 Seiten; graph. Darst.

Digitisation:: 2021

Collection:: Economics Books

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Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Problems of verification

Collection:: Economics Books

CHAPTER 18 THE FOREIGN EXCHANGES AND THE INTERNATIONAL MOVEMENT OF SECURITIES SoME further aspects of the movement of specie from country to country will be considered in the present chapter: the influence of dealings in foreign exchange, and the somewhat similar influence of the international movement of securities. It is not within the scope of this book to follow the details of the mechanism of the foreign exchanges. The intricacies of the subject are adequately set forth in the books on this special subject, and need the less attention here because they are of little significance for the broader problems of international trade. There is occasion for no more than a summary statement of the way in which dealings and speculations in the foreign exchanges serve to postpone, to smooth, to reduce to a minimum, the actual transmission of gold. If there were no such thing as speculative purchases and sales of foreign exchange, the rate (the price of bills on a foreign country) would always stand in one of three positions. It would be at the first position (par) when imports and exports exactly balanced ; or rather, when the total of all payments, including non-merchan- dise items, exactly balanced. It would be at the second position (specie-export point), when the balance of payments was against the country; and at the third (specie-import point), when the balance of payments was toward the country. In fact, the rate fluctuates all thru the range between the two extremes, and only by accident is it at any one time precisely at the parity point. This unstable and shifting situation is due to the calculations and trading of the bankers and brokers who buy and sell exchange. They sell forward, at less than the export 215

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