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

GREAT BRITAIN, II 257 kind not easy to put fingers on, is found within our grasp ; a recon- dite theorem is confirmed. I turn now to another aspect of the problem. The concrete way in which the inhabitants of a country get the benefit of more favorable terms of trade — gross or net —is that their money incomes rise, while the prices of imported commodities fall. With the same labor they can buy more of imported goods. More favorable terms of trade mean rising money incomes; less favor- able terms, falling money incomes. We should expect in Great Britain a tendency toward rising money incomes from 1880 until 1900; thereafter either falling incomes, or a check in the upward movement. Let the reader glance at the chart again. On it he will observe a lower line; it indicates the movement of money wages from 1880 to 1913. The slope 1s upward until 1900. Thereafter it shows no marked inclination either way, certainly not before 1913. The relation between money wages and the barter terms of trade is clear, certainly for the earlier period. As the terms become more favorable, money wages rise. After 1900, when the change in the barter terms is in the other direction, the rise in wages halts. Money wages remain nearly constant. The period after 1900 was one of rising prices and rising money incomes in the world at large ; and the upward movement might be expected to show itself in Great Britain. Yet as regards money wages, there is no such tendency; a striking contrast to the conditions of the previous period, when they moved upward in the face of falling commodity prices. For the period as a whole there is unmistakably an in- verse relation between the movement of wages and the changes in the barter terms of trade. It is precisely the sort of cor- relation we should expect on grounds of theory. We may turn back now for a moment to the Canadian case, described in the last chapter. The international trade of Canada from 1900 to 1913 evidently followed a course quite the reverse of the British. Great Britain was not only a lending country, but was rapidly increasing her loans; Canada was borrowing heavily.

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