199

INDEX

Comparative differences in costs, 3, 23,
and Ch. 4, passim ; relation to increasing
 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 system
 to specie flow, 211; Franco-German
 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 international
 and reciprocal domestic demands,
 54, 56, 92; significance of
curve, 117; effect of changes in demand
 on barter terms of trade under
inconvertible paper, 363.
Depreciation charge, in relation to interest
 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; increasing
 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.