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

THE FRANCO-GERMAN INDEMNITY OF 1871 267 the foreign securities of the French investors furnished the where- withal. Italian, Austrian, Spanish, Turkish, American (South and North) securities were sold by French holders; sold not only in Paris but in London, Brussels, Amsterdam, in Germany itself. The proceeds were used in buying their own country’s rentes. The oreign holdings of the French were converted pro tanto into domestic holdings. The proceeds of the sales of rentes were in turn used by the French Government in buying bills such as Germany accepted under the treaty stipulations — bills on Paris, London, Brussels, Amsterdam, and in some part on Frankfurt Hamburg, Berlin. The French side of the story thus is clear and comparatively simple. It has been put on record in Say’s Report with a lucidit and fulness unusual for operations of the kind. How much France paid and in what way she paid, is well known. So far as concerns the theory of international trade and inter- national payments, this (the French) side of the operation is in some ays instructive, in other ways little so. It is instructive in show- ing how important may be the part played by securities, especially when there is pressure for large remittances in a short space of time. hen occasion arises for sending great sums from one country to another, it may be expected that specie (if available at all) will move first of all; securities next; goods last of all. A compar- atively slight movement of specie may lead to a considerable movement of securities; whereas the next stage, that of the transfer of goods, may not set in on a large scale without a heavy preceding transmission of specie. Something of this sort might be foreseen in the case of ordinary commercial transactions. The French indem- nity payment, however, was not at all an ordinary commercial transaction. It differed not so much because the remittance had to be made by the Government — for, after all, the French Treasury had to effect payments to Germany by the same mechanism which would have been used by private persons — but in the circumstance that France was able to take advantage of the exceptional position of her investors. The French Treasury needed great sums at once and was able to get them with surprising quickness by floating its

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