International trade

Bibliographic data

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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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Problems of verification

Collection:: Economics Books

CANADA 227 again thru the inflow of specie by way of New York — all this could persist only because of the continuing loans. Had it not been for the loans, the expansion of credit by the banks must have come to a halt. As it was, notwithstanding occasional interrup- tions, the round was repeated year after year. Specie did flow into Canada: the entire circulating medium did enlarge ; in essentials, what happened did conform to the previsions of theory. Next, and again quite in accord with theoretical expectation, prices in Canada rose sharply. Here, it is true, our experiment becomes somewhat impure. Another factor complicated the situ- ation, namely the advance in prices which was taking place the world over. It will occur at once to the conversant reader that the level of prices in all western countries had begun slowly to rise in the years just before 1900, and that the rise became marked in the decade succeeding; a consequence, as is generally agreed, of the steadily increasing supply of new gold from the mines. What then is to be expected in Canada, on grounds of theory, is a rise greater than that appearing elsewhere. More particularly we should expect a greater rise than in Great Britain, the lending country. Precisely this is what happened. Whatever method of measuring the advance in prices be applied — weighted or “unweighted” mean, an index for all commodities or one for selected commodities — Canadian prices rose much more than British. Taking the year 1900 as the base (100), the weighted index for Canada was 136 in 1912, 132 in 1913. It was but 113 in Great Britain for both years. And as compared with the United States — a neutral country, so to speak — Canada again showed an exceptional advance. During the earlier years of the period, until about 1910, Canadian and American prices showed a roughly parallel upward movement ; but in the later years, when borrowing was on the largest scale, the Canadian went distinctly higher. For our purpose, however, this gross movement of prices is less significant than the price changes of the several separate classes of commodities — imported goods, exported goods, domestic goods. On grounds of theory we should expect not a uniform

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