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

386 INTERNATIONAL TRADE i. a od for a time panic-struck. Before long the panic proved to have been little less than foolish, and the episode was almost forgotten, tho the precipitate legislation to which it led was kept on the statute books for an indefinite period. In support of the view that the process of depreciation brings about an export bounty it has been urged that there is one circum- stance which in itself brings about that result: the failure of wages to rise as fast as prices. No doubt it is true that often enough, tho not universally or inevitably, money wages do fail to rise as fast as the prices of goods. So long as the discrepancy lasts, the business class gains thereby. Profits rise and business booms. And this presumably extends to the exporting industries. Foreign exchange rises with everything else ; the producer of exported goods receives more money for the same quantity of goods; his expenses in the way of wages fail to rise as much; he gets an extra profit, or a “bounty.” I submit that all this, however, shows merely that the exporter gains as much as do others who are in business ; not that he gets any profit different from that which accrues elsewhere. There is noth- ing to give a special fillip to the export industries. There may be a bounty for the business class at large, but there is no special bounty for the exporters. And only such a special bounty would serve to increase the volume of exports. The situation, I may remark, is different with the other type of dislocated exchanges — silver exchange. Here a special gain for the exporters presumably appears. If there occurs, in a country having a silver standard, a rise in exchange on gold countries — in India, say, arise in sterling exchange — the bounty on exports will arise. It will arise, that is, from the mere fact that in the world market the gold price of silver has fallen. In the silver country the prices of goods in general will not be affected ; there is nothing in the lower prices which silver fetches in gold countries that will in itself change the price level of the silver country. But the prices of its exported goods will be affected at once. They will advance in correspondence (more or less complete) with the advance in foreign exchange. I will not add to what I have already said,

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