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 III. International trade under inconvertible paper

Collection:: Economics Books

372 INTERNATIONAL TRADE pe Sp at od chain of events similar in character might start the other way. An increased movement of goods from India to Great Britain might set in because of an increase of demand for them ; and this would lead to a rise in rupee exchange. We have here merely another case of the sort of distinction just made for the case of paper money and paper exchange. The rate of rupee exchange may be the cause of merchandise move- ments, or the merchandise movements may be the cause of the rate of exchange. Rupee exchange might go up or down from causes which have no immediate connection with the import and export goods — from loans, interest payments, government remit- tances. Thereupon merchandise movements would respond to the new condition of exchange. Or, the other way, crops might fluctuate from season to season, or trade disturbances might affect the volume of Indian exports (cotton, say, during the Ameri- can Civil War). Then exchange would respond to the new condi- tions in the movements of the goods. And, at a subsequent stage, other goods, not the originators of the disturbance, would be affected precisely as if the rates of exchange had been shifted because of non-merchandise transactions. To this analysis, however, there must obviously be added, in the case of silver exchange, the consideration of a factor different from any that enters in the case of paper money and paper ex- change. It is the price of silver bullion in terms of gold. The gold price of silver may alter from causes that have nothing to do with rupee exchange and nothing to do with the trade between the gold and silver countries. The price of silver may fall in London because larger quantities come from the mines, or because the demand for use in the arts declines, or because governments buy less silver for subsidiary coin. The price of rupee exchange will follow that of silver. Merchandise movements will then be influenced exactly as if the rate of exchange had been disturbed by loans er other non-merchandise transactions. The converse chain of events may also take place. Merchandise movements may themselves be a cause influencing the gold price of silver bullion. An increase of exports from India, or a decline of imports

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