TRIBUTE AS EXAMPLE
Raa ie
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conclusions which they suggest. The reader will bear in mind
that it is the principles alone which are here to be considered. The
actual operations will be described and discussed at some length in
the second part of this book, and will give occasion for considerable
qualifications, perhaps modifications, of the principles. ol
“Invisible” is the adjective commonly used to describe these
items. They are invisible simply in the sense that they are not
ecorded as publicly as the imports and exports of merchandise, and
on the whole are not so accurately known. The term is convenient
when one wishes to speak of the whole series of items and to com-
pare them with the goods transactions.
Begin with the simplest case of all : a remittance that has to be
made from one country to another, with no quid pro quo obtained
or to be obtained from the country receiving the payment. Such,
tor example, would be the remittance of income to absentee land-
lords ; more strikingly, a war indemnity payment, or a mere tribute.
When there is, immediately or ultimately, directly or indirectly, a
return of some sort by the receiving country — as with freight
harges, tourist expenses, loans — the situation is different in some
essential particulars. Eliminate this perhaps complicating ele-
ment by taking a case in which there is no quid pro quo of an
kind : something in the nature of a tribute.
uppose further that a stated payment is to be made regularly
year after year. Sporadic payments are commonly effected, under
the modern organization of money and credit, by methods which
disturb the ordinary course of trade to a surprisingly small extent ;
and very heavy payments of this kind are often settled with great
smoothness. Steadily continuing payments, however, even tho
moderate in amount, are not wound up without affecting the main
current of international trade — the movement of goods from
untry to country.
“Recall the figures already considered. Suppose :
In the U. S. 10 days’ labor produce 20 wheat
} S100 P vi 20 linen
”’ Germany 10 ” » 7? 10 wheat
” Germany 10 ” 15 linen
