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

SOME EXPERIENCES UNDER PAPER MONEY 34 speculative ventures the world over, interrupted for a short «nao by the Franco-German war and then stimulated by the very operations connected with the indemnity of 1871. It was the up-stage of a world-wide business cycle. When the crisis came in 1873, loans to American enterprises ceased almost at once, and only such contracts and commitments were maintained as could not © undone. In a year or two, by 1876, there was even an opposite movement; a considerable repayment of loans was called for and was effected. So things ran until in 1879 a new cycle started; then under different monetary conditions, and with results not significant for the purpose in hand. The episode with which we are here concerned ended with the year 1878. I have spoken of the currency situation as stable. It would be more accurate to speak of it -as stationary. The total volume of paper money remained virtually the sume. But population and the volume of transactions continued to advance. Setting aside the fluctuations, by no means negligible, in credit conditions and in velocity of circulation, there was a steady undercurrent of pressure on the money supply and so a tendency toward a decline of prices. The process was that often described at the time as “growing up to the currency,” a very irregular growth, but one that on the whole did take place, and that needs to be allowed for in inter- preting the long-run trend of the price movements. Observe now on the chart (page 396) ' what took place in the rates of foreign exchange and in the prices of goods. First, as to foreign exchange. The rates of exchange (sterling), and the quoted price of gold in terms of paper, necessarily moved together, and the price of gold may be used to indicat: the course of exchange. That price, the gold preminm, had remained fairly stationary, tho with some declining ten. “50 to 1869, ranging from 140 to 135. In 187 uply, and in the remaining vears of boom, fr. ~ined at about the figure 110. After the crisis to ned for a while still stationary, and indeed showed ad in 1875. In the course of 1877 and 1878, it weil steaus, w= at last, with the resumption of t Based on Professor Graham's fiuies, pp. 237, 253 of the article cited above.

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