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 III. International trade under inconvertible paper

Collection:: Economics Books

394 ee BU INTERNATIONAL TRADE tive in several ways. The country’s currency was paper, and the volume of the paper remained virtually unchanged. The case was one of a stable paper currency, not of increasing issues. At the same time there were two stages in the period, marked by different conditions of international trade. Until 1873 there were heavy borrowings from abroad; after the crisis of that year the bor- rowings abruptly ceased and large repayments were made. As has already been noted, imports swelled rapidly during the first stage, and far exceeded the exports; while during the second the situation was reversed, exports exceeding the imports. As has also been noted, this change toward a ‘favorable’ balance was quite in accord with theoretical expectation. Yet evidently it did not take place thru that mechauism of shifting prices in the borrowing country which is assumed in the received theory. Since the United States was on a paper money basis, the mechanism must have been iifferent.! The case is thus adapted for a test of the theoretical analysis of the mechanism of payments under paper conditions. It is promising in still another way. In a situation otherwise changed but little, a single factor — that of the import of capital —varies sharply, first in one direction, then in another ; and its influence might be expected to be separately discernible. As in the Canadian case,® we have something analogous to an experiment ; one factor changes, while other things remain almost the same. | We may begin with the year 1866. By that time the influence of the war disturbances was no longer dominant, and something like normal conditions had been restored. In 1866-68 there was already substantial borrowing from abroad, chiefly of course from Great Britain; and with it a large excess of imports over exports (in terms of gold values). In 1869 the great spurt set in. The annual import of capital, which had been about 75 millions of dollars, ran to much larger sums — an average of about 130 mil- lions for the quinquennium 1869-73. The borrowings were mainly for railway building, which was carried on with feverish activity. The whole period, it need hardly be said, was one of 1 See Chapter 26, 4p. 343. 2 See Chapter 19, p. 222.

Access restriction

Copyright

fullscreen: International trade

Monograph

Chapter

Table of contents

Download

Monograph

Chapter

This page

Image fragment

Citation links

Citation recommendation