CONTENTS

XV

PAGES

prices and money incomes, 129. Irregularity of capital exports,
129. A country in the early states of borrowing has an excess of
imports; in the later stages an excess of exports, 130. A precise
balancing of the losses and gains arising out of the shifts from
more to less favorable barter terms of trade is impossible, 131.
Freight payments in the international balance sheet, 132.
Freight payments affect the barter terms of trade in a manner
similar to payment of tourists’ expenditures. Payment for
freight services no more signify a loss to a country than payments
for merchandise imports, 134. Circumstances under which the
burden of shipping charges may be transferred to the exporting
country, 135. The practise of valuing imports C. I. F. and
exports F. O. B. leads to some statistical difficulties, 136. Illustrations
 from the trade between Australia and Great Britain;
between United States and Great Britain, 137.

CHAPTER 13

Duties oN IMPORTS AND THE BArTER TERMS OF TRADE . :
Effects of a revenue tax on imports, 141; the barter terms of
trade become more favorable to the country imposing the tax. A
protective tax on imports exerts a similar influence, 144. The
loss in other directions must be balanced against this gain from
more favorable barter terms, 145. In any case the gain is certain
only when other countries do not resort to similar duties, 147.
The position of the United States with regard to these possibilities,
 148.

141-148

PART 11

PROBLEMS OF VERIFICATION

CHAPTER 14

INTRODUCTORY .

151-160

The abstract method of analysis useful only as a preliminary
approach, 151. Some aspects of international trade patently in
accord with theory, 152. Is there a tendency to world-wide
equalization of prices and wages? 153. Persistence of wide differences
 in prices and wages illustrated by Great Britain and India;
by Great Britain and the Continent of Europe, 154. High or low
money wages are not a factor in promoting or retarding international
 trade, 155. Differences in wages and prices between
Western Europe and the Orient, and their relation to the deductions
 of theory, 156.