16 
INTERNATIONAL TRADE 
come to exist, and how far they may be related to international 
trade, in the last analysis, as effects rather than as causes. These 
aspects of the problem will be considered at the close of the present 
chapter. Taking the modified wages figures, then, we have 
further modifications in the other figures thus: 
In the U. S. 10 days’ labor 
» » U. S. 10 2» » 
” Germany 10 7 » 
” (Germany 10 7” ” 
Wages ToTAL 
PER DAl WaGEs 
$1.50 gas 
$1.50 
$0.66 
$1.00 
PRODUCE DomEsTIC 
SuppLy PricE 
20 wheat $0.75 
20 linen $0.75 
10 wheat $0.662 
15 linen $0.66% 
The supply price of wheat in Germany has fallen to $0.663. 
The labor in that occupation is comparatively ineffective, yet its 
price to the employing capitalist is low. Wheat can be sold at a 
comparatively low price, even tho it requires comparatively much 
labor to produce. 
Observe further that both wheat and linen are now lower in 
price in Germany than in the United States. Both will be sold 
indiscriminately in the United States by German exporters. On 
the other hand no commodity can move from the United States 
to Germany. Specie will flow to Germany and prices will rise 
there. Prices will fall in the United States. The rise in Germany 
and the fall in the United States will go on until both wheat and 
linen sell for the same prices in the two countries. 
The resulting situation will be of the following sort : 
In the U. S. 10 days’ labor 
2 2) U. S. 10 J) ” 
” Germany 10 ” 2 
” (Germany 10 ” 22 
WAGES 
PER DAY 
$1.40 
$1.40 
$0.70 
$1.05 
ToTAL 
WAGES 
%14 
a1 4 
37 
210.50 
PRODUCE DoMEsTIC 
SuppLy PRICE 
20 wheat $0.70 
20 linen $0.70 
10 wheat $0.70 
15 linen $0.70 
The movement of specie will then cease, and all movement will 
cease. There will be no trade between the countries. Each will 
go its way regardless of the other. The case will be the same in 
its outcome as that of equal differences in costs. 
What this signifies evidently is that the lower wages for German 
wheat growers have the same sort of effect as would a higher 
effectiveness of their labor. In terms of labor-cost, of effectiveness