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INTERNATIONAL TRADE
movement but a series of different movements. If the world level
of prices had remained unchanged, we should have expected in
Canada a fall in the prices of imported goods, and a rise in the
prices of domestic goods. Exported goods in the long run would
have shown a movement similar to that of the domestic, but with
a lag which would for some time keep their prices either on the
same low level as the imported, or in a position intermediate
between that of the imported and the domestic articles. In the
actual state of things, however — the world level of prices not
stationary, but advancing — we should expect goods imported
into Canada to show some advance in price, but a less advance
than the domestic, and less advance than the exported also. With
prices rising everywhere, we should expect domestic prices in
Canada to rise more than the gross average in that country, and
much more than the gross average elsewhere. This is precisely
what happened. The prices of domestic goods in Canada rose
from 100 in 1900 to a range as high as 161 in 1913. Imported
goods showed an advance unmistakably less. During the earlier
years of the period they remained on the whole unchanged, but
began to advance after 1905, and reached their maximum, only
114, in 1913. Export goods moved in a range roughly half-way
between these two, reaching 139 in 1912 and 134 in 1913.
The details of the price changes, still further followed, remain in
accord with the previsions of theory. (Thruout, prices for 1900
are the base, 100.) A selected list of identical domestic commod-
ities showed for Canada a rise to 162 by 1913; for the United
States one only to 123 by the same year. Most significant was
the change in wages and services. As has been said again and
again, money rates of wages are the best single index of the move-
ment of domestic prices. Canadian (weekly) wages rose to 145
in 1912, 149 in 1913. British money wages showed virtually no
advance at all during the period; the United States showed an
advance distinctly less than Canada — to 123 in 1911 and 127
in 1913. A novel and significant indication of the domestic price
movements was the charge for hospital services (expense per
patient per day), which rose to 145 bv 1913. House rents rose to