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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Chapter

Document type:: Monograph

Structure type:: Chapter

Title:: Part II. Problems of verification

Collection:: Economics Books

316 Y INTERNATIONAL TRADE one set of Americans who furnished the funds for paying still another set of Americans. The actual merchandise — the iron and steel, copper, railway material, motor cars, cotton, leather, breadstuffs and meat products — went to foreigners. What came from foreigners was merely some scraps of paper, their govern- ments’ promises to pay; nay, in sundry cases nothing more than an entry on the books of the Treasury. Never was the nature of capital export exhibited more clearly. Goods go out, and for the time being nothing enters in return. And never before was the nature of capital export more completely misunderstood. The country was supposed to receive much and to relinquish nothing; whereas in fact it parted with much and received nothing. The curious self-deception of the American public was largely due to the continued upward movement of prices, the continued war boom, the specious appearance of wonderful prosperity. And in this regard there is a sharp difference between the first stage and the second. The upward movement of prices which had begun in the latter part of 1915 and had become marked in 1916 went on with swifter pace thru 1917 and 1918. The reader may be assumed to be familiar with its character and its momentous consequences. What is pertinent to the problems of international trade is that during this second stage — 1917 and after — the price movement was the result of domestic causes only. During the first stage it had been otherwise. Then the great imports of gold (during the fiscal years 1916 and 1917) filled the reservoirs of the banks. The Federal Reserve System, established in 1913, was just getting on its feet. The inflowing gold supply made its way into the coffers of the Reserve Banks, and supplied the basis for a quick and sharp expansion of credit, deposits, and circulating notes. But when the country entered the war the inflow of gold ceased. It was no longer necessary for the Allies to muster every resource — gold, as well as loans and sales of securities — in order to pay for their purchases. The United States Treasury stepped in for them. The operations of the Treasury, however, served to expand the circulating medium even more effectively than the gold imports

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