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

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

106 ‘INTERN ATIONAL TRADE The stage of reversal which followed the crisis of 1890-91 shows the operation of the same forces. The immediate consequences are easily seen. The price of exchange soared high in 1891, and remained high for several years thereafter. The large supply of bills on London which before had been available from the loans suddenly ceased. Those who needed to remit to London and were bidders for sterling bills had to pay a higher price in Argentine pesos. And this in turn made the prices of exported goods higher and stimulated exports; conversely, of course, checking imports. Such remained the situation for a year or two. Then ensued conditions more like those of paper not changing in quantity. The case becomes comparable to that in the United States during the years just preceding the resumption of specie payments. While the quantity of the Argentine paper remained stationary, the gold premium declined; Argentina, like the United States, had the fortunate experience of “ growing up to the currency.” There was financial and industrial recuperation, and finally the return to the gold basis. Those effects of paper money on international trade which are here under review were thus confined to a compar- atively short span of time, the few years just before the crisis and just after it. As regards imports, a qualification must be made similar to that just suggested in the case of the United States. The quali- fication is quantitatively even more important. The imports into Argentina (exports from Great Britain) were in greater part the direct result of the British loans. The funds borrowed were largely spent at once on British goods, especially on railway equip- ment; and these purchases would not have been made but for the loans, being specifically induced, or at least made possible, by them. The movement of exports under such circumstances takes place, as has already been abundantly explained, in quasi-automatic very movements themselves were spasmodic and confused. Very possibly a more apt comparison with North American experiences could be made by citing an earlier episode in the history of the United States than that considered in the first part of this chapter; namely, that of the years from 1833 to 1837-39. Bor- rowings, inflation, marked changes in imports and exports, then took place in a manner and under conditions which have a curious similarity to those in Argentina a half-century later.

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