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

100 INTERNATIONAL TRADE a MHL pili ry 10 Vig So far as concerns Great Britain, there is of course much less occasion to turn to an explanation based on the theory of dislocated exchanges. The gold standard having been maintained in Great Britain, and most of the country’s trade conducted with other countries also having the gold standard, the mechanism of specie flow and specie prices was in operation for the larger part of her international mechanism. It is comparatively simple in theory, even tho, as we have seen, by no means without its complications in actual operation. At all events it is different from that of paper exchanges. Professor Graham has noted, to be sure, certain tendencies in the prices of British goods during the period in ques- tion which are quite in accord with the tendencies in the United States. They are in accord, that is, in that they show inverse movements of the kind to be expected under dislocated exchanges. The relations in Great Britain between her domestic prices and the foreign or international prices indicate a congruence (mutatis mutandis) with the analogous relations in the United States. But the evidence on this score is meager, and in interpreting it one can easily be led to discovering that which one has set out to find. It ts the American phenomena which may be fairly said to verify the conclusion of theory. Finally, it should be borne in mind that the episode covers a comparatively short period, and that only the earlier and transi- tional effects of changes in the balance of payments (in this case from the borrowing operations) are illustrated. There was no long-continued steady succession of loans; merely two marked stages of opposite character — unusually heavy borrowing during the first, abrupt cessation of the borrowing during the second. When loans set in afresh after 1879, the paper régime had come to an end. The features characteristic of dislocated exchanges are hence observable only for a scant decade. We are able to discern them for a period of transition only. Nothing can be made out as regards the eventual outcome. We do find that the transi- tional effects are such as the theoretical analysis has led us to expect ; the price of foreign exchange is low, for example, during the stage of heavy borrowing, and the prices of export commodities are

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