199 
INDEX 
Comparative differences in costs, 3, 23, 
and Ch. 4, passim ; relation to increas- 
ing returns, 83. 
Cost, used in various senses, 3, 12, 161. 
Cotton goods, effectiveness of production 
in United States and Japan, 174. 
Credit, sensitiveness to gold flows, 200, 
330. 
Favorable terms of trade, 30, 117. See 
also Barter terms of trade. 
Federal Reserve System, relation of 
credit expansion to specie movements, 
206, 213; operation of, during the war, 
316; after 1913, 330. 
fisher, I., 364. 
Flax industry, as illustration of principle 
of comparative advantage, 186. 
flight of capital, 321, 391. 
Flour, effectiveness of production in 
Great Britain and United States, 170. 
Mux, A. W., 167, 170. 
Foerster, R. F., 295 n. 
Foreign exchange rates. See Contents, 
Ch. 18; effect of speculation on, 215, 
and Ch. 18, passim ; effect of pooling on, 
216; between gold-standard countries, 
Ch. 18, passim; fluctuations under 
dislocated exchanges, see Contents, 
Chs. 26, and 27 ; impact theory of, 344 ; 
is there a ‘“‘normal’” under dislocated 
exchanges, 348; cause or effect of 
merchandise movements, 371. 
Foreign investments, relation of, to 
international payments, 266. 
France, effectiveness of labor in, sce 
Contents, Ch. 15; monetary system 
of, 210; sensitiveness of monetary sys- 
tem to specie flow, 211; Franco-Ger- 
man indemnity, Ch. 22. 
tranco-German indemnity, Ch. 22. 
Free trade, does not lead to equalization 
of wages between countries, Preface, 
38. 
Freight charges. See Shipping charges 
and Transportation. 
Demand, elasticity of, 31; effect of 
changes in demand on barter terms of 
trade, 30, 101, 305; reciprocal inter- 
national and reciprocal domestic de- 
mands, 54, 56, 92; significance of 
curve, 117; effect of changes in de- 
mand on barter terms of trade under 
inconvertible paper, 363. 
Depreciation charge, in relation to inter- 
est charge, 69. 
Dewey, 289 n. 
Differences in labor costs, Ch. 15, passim. 
Differences in wages, 44, Ch. 6, passim, 
66. 
Diminishing returns, 77, and Ch. 8, 
passim. 
Disadvantage, inferior, 23. 
Discount rates, relation to deposits, 201 ; 
relation to managed currency, 383. 
Dislocated exchanges, defined, 338: 
barter terms of trade under, 355; 
international trade under, see Contents, 
Part III; fluctuations in foreign 
exchanges under, see Contents, Chs. 
26 and 27; speculation in, Ch. 28; 
bounty on exports under, 385. 
Domestic goods, 35, 40. 
Domestic prices, 34, and Ch. 5, passim ; 
relation to money wages, 40. : 
Domestic supply price, 12. 
Duties on imports. See Import duties. 
German chemical industry, in relation 
to non-competing groups, 57. 
Germany, non-competing groups in, 57 ; 
effectiveness of labor in, see Contents, 
Ch. 15; Franco-German indemnity, 
Ch. 22; how affected by receipt of 
indemnity, 268; bounty on exports 
after the Great War, 388. 
Gifts, in relation to barter terms of trade, 
121. 
Gold exchange standard, 380. 
Sold movements. See Specie. 
Graham, F. D., 393, 400. 
Great Britain, comparison of British and 
Indian wages, 18; use of capital in 
18th and 19th centuries, 71; increas- 
ing returns in 19th century, Ch. 8; 
how shipping charges enter into her 
international trade statistics, 136; 
British, Indian. and Continental wages 
Effectiveness of labor. See Labor. 
Elasticity of demand, 31. 
England. See Great Britain. 
Equal differences in costs, 3, 19, and Ch. 
3, passim. 
Exchange dumping, 385, 391. 
Exchange rates. See Foreign exchanges. 
Experiment, analogy of some economic 
experiences to, 233. 
External economies, 84; in United 
States, 85. 
g 
“Favorable” balance of trade, 111; 
how affected by loans and interest 
payments, 127, 131; significance of, 
112, 216; little understood by public, 
315, 320. See also Balance of trade.