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

314 INTERNATIONAL TRADE I But there was this important modification : the American Govern- ment now undertook to do the borrowing and to secure the funds from American investors. The Allies of the United States (as they had now become) had strained their credit almost to the breaking point. With all the resort to collateral security, they could float no more loans. At the critical moment the United States stepped in, issued to the American public its own securities, and then put the proceeds at the disposal of its Allies by way of loan. It cannot be doubted that for the first year of the American participation in the war this was the one substantial contribution, over and above that of moral support and psychological effect, which the United States made to the Allied cause. The procedure was simple. The Treasury issued the successive series of Liberty bonds and was able to dispose of them to the public; of this more presently. The Allied governments con- tinued their purchases of goods in the United States and the goods were exported as before. When payments for goods became due, this or that government would notify our Treasury of the sums for which it had need. Thereupon the Treasury would instruct the Federal Reserve Bank of New York to hold to the credit of the government a stated sum; and the sum would be withdrawn by the borrower, deposited with its bank or banker, and used for payment of the American sellers of the goods. All that the Treasury had to show for its vast disbursements was a certificate of indebtedness of a quite informal sort. Extraordinary amounts, hundreds of millions in a single transaction, were handled in this way. In minor cases involving much smaller sums, the procedure was somewhat different. For certain governments, sums speci- fied in advance were put at their disposal in the Treasury, and against these they drew as they saw fit. And to some extent also the advances were not used for the purchase of American goods, but for remittance abroad to be used in any kind of expenditure which the borrower desired. But the characteristic operations, and those which involved incomparably the largest sums, were of the first kind. The advances were still made from time to time after purchases of American goods had been

Access restriction

Copyright

fullscreen: International trade

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation