CHANGES IN VOLUME OF PAPER MONEY 389

a likelihood that the German exporter will gain, while yet his goods
are sold at lowered prices in the countries to which they go.
Something of this sort happened when the German Government
increased its currency issues during a year or thereabouts immediately
 after the Great War. It had heavy remittances to make on
reparations account; and it was the purchaser, directly or indirectly,
 of needed food supplies and raw materials. Exchange went
up, exports were stimulated, exported goods could be delivered
abroad at lowered prices, and there came the fright about “exchange
 dumping.”
The continuance of such a situation depends not only on the
continuance of the government issues and their use in buying
foreign exchange, but on the ease with which increasing supplies of
roods for export will be forthcoming. The quicker there are additional
 exports, the sooner will exchange go down from the unusual
height. As in the case of an unchanging paper currency (considered
in Chapter 26) this characteristic of the price situation is temporary
 or transitional. The producers of exported goods do not
remain indefinitely at an advantage compared to other domestic
producers. Some of the latter will transfer to the export industries;
 and those already engaged in them will expand. The
quicker there are additional supplies of goods for export, and so
additional supplies of bills on foreign countries, the sooner will
exchange go down from its abnormal height. The ultimate outcome,
 supposing no further disturbing factors to enter, can be
worked out in the same way as for the case of paper which is stable
in volume. In the end there will be no special influence on exports
and no special effect on the prices of exported goods. The flurry
will subside, and (always on the supposition that no further disturbing
 factors enter) international trade will return to a normal
course, with those possibilities of shift and change which have been
already considered as possible for a country having a settled
volume of paper.
Asit happened, in the much discussed German post-war situation,
additional supplies of goods for export were not at all forthcoming
in large amounts. Such as could be had, were indeed exported