VARYING ADVANTAGES 
Cu 
a he 
03 
figures which follow, that a relatively high rate of money wages in 
the United States — a considerable gap between American and 
German wages — signifies that the United States secures the larger 
share of the possible gain from the trade; whereas relatively lower 
rates in the United States —a smaller gap in money wages — 
signify that the United States secures the smaller share. For 
simplicity, the figures will be arranged on the basis of keeping 
money wages in the United States at a constant figure, namely 
$2.00 a day. The changes which serve to illustrate the different 
possibilities are here confined to Germany, where money wages 
become lower as the terms are less favorable to her, higher as they 
become more favorable. 
Again we take the three possible cases. 
(1) Suppose first a wide gap between German and American 
money wages. Let wages in the United States be $2.00, wages in 
Germany $1.20. We have then: 
In the U 
» » B 
1h) » 1 
” Germer- 
Germany 
Germanv 
Wagrs 
HY R o dix J 
TorAL 
XT pyre 
lz 
Propuce 
*Y wheat 
'inen 
* cloth 
' whea 
.5 linen 
18 cloth 
DoMmEesTIC 
SurpPLY PRICE 
£1.00 
‘1.00 
1.00 
*1.20 
$0.80 
20.662 
Wheat is produced at lower money cost in the United States than 
in Germany and moves from the United States to Germany. Both 
linen and cloth are produced more cheaply in Germany and move 
thence to the United States. The United States, while gaining 
thru the importation of both, evidently gains more from the 
importation of cloth than from that of linen. She gets her cloth 
from Germany for $0.66%, whereas the price at which cloth can be 
made in the United States is $1.00. She gets her linen from Ger- 
many for $0.80; less than the American supply price of $1.00, but 
not as much below that price as in the case of cloth. Germany 
gains by a cheapening of wheat to the amount of $0.20. It would 
cost her $1.20 to produce wheat at home; she procures it from the 
United States at the price of $1.00.