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

Usage license:: Get license information via the feedback formular.

Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Problems of verification

Collection:: Economics Books

310 INTERNATIONAL TRADE were found in the time-honored and inevitable resort of the hard- pressed — borrowing. The first great loan operation came in September, 1915, when the Anglo-French loan of $500,000,000 was placed on the American market. Like other subsequent borrowings of the two govern- ments, it was managed by the firm of J. P. Morgan & Co. Thruout the war, and indeed for the period after the war, that firm acted as financial agents not only for them, but for their European allies also. Its first operation, the “Africs” ! loan of 1915, was simple enough. Government bonds, the joint and several obligations of Great Britain and France, having five years to run, were sold to Americans; being taken by banks and investment concerns, not without some pressure from the great house itself, and in course of time distributed among investors. The proceeds were used by the Morgans in order to pay for the American goods which had been or were to be bought by the two governments. The foreign purchasers, be it noted, were in the main not private per- sons, but the warring powers themselves. They bought not only war supplies of all kinds, but food and other necessaries for their civilians. Characteristic of purchases of the latter kind were those of wheat and flour, bought by the governments and then sold to their own population at a lower price than had been paid, lest a stir of unrest be aroused by the high price of bread. Not all the exports from the United States were accounted for by the various kinds of government buying; but it was these which played by far the largest part. Other loans followed, and, as the war went on and spread over all the world, in such volume that the credit of the borrowers was strained to the utmost. Soon it became necessary to resort to less simple methods, and to attach to the loans which were placed in the American market something more than the bare obligations of the several governments. Secured loans were offered. Stocks and bonds of American railways and other enterprises, held in Europe in consequence of the long series of loans made in previous years by foreign investors to Americans, were now sent back to the 1A. Fr.” was the stock market abbreviation, commonly pronounced ‘‘ Afric.”

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