230 
INTERNATIONAL TRADE 
of the preceding period. These differ from wheat not only in that 
they are outside the class of pioneer products, but in that they 
had not been produced preponderantly for export. The domestic 
consumption had been large; they were nearer the verge of being 
once for all in the domestic class. Their exportation in some cases 
declined, in others ceased. The close commercial relations between 
the United States and Canada, and the particularly close relations 
of those Canadian districts which are nearest the border, caused 
some of them still to find their market in the neighboring country, 
yet with a clear tendency to diminution. But — to take one con- 
spicuous example — cheese, which before had been made chiefly 
for export, now dropped out almost completely. It is not necessary 
to reproduce all the details of Professor Viner’s investigation, or 
to note the exceptions to the general trend, sometimes easy of 
explanation, sometimes quite obscure. The reader is referred to 
his volume, in which the whole situation is unfolded. With 
hardly an exception, the phenomena of the export trade are as fully 
in accord with theoretical expectation as are the changes in prices 
and in money incomes. 
Another aspect of the Canadian experience is in the trade 
between Canada and the United States. The contiguity of the 
borders of the two countries, and the consequent large trade 
between them, simplify a phase of the problem which as yet has 
hardly been touched — the relations between the borrowing 
country and third countries, ¢.e. countries other than the lender. 
In this case the United States was a third country; indeed, the 
only third country of any consequence. 
In our theoretic discussion of the general effects of international 
lending and borrowing, it was pointed out! that under certain 
conditions the transactions may bring a movement of commodities 
into the borrowing country by a process that is simple and direct. 
That movement may take place without any flow of specie, without 
any disturbance of prices, without such intricate after-effects as 
have been described in the preceding paragraphs. This simpler 
course of events appears when the borrowers use the proceeds of 
1 See Chapter 12, pp. 124-127. 
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