186 ANALYSIS OF THE TERMS OF
exports after that date, gold is flowing out freely when we should
look for its retention. Nothing in the theory of international
trade accounts for the anomalies ; and we are forced back upon
the double effect of external borrowing and internal inflation,
coupled with the embargo upon gold export, for a satisfactory
explanation.
TasLE XLI
Gold Movements and Imports of Capital, 1915-281
Year.
1915
1916 |
1917
1918
1919
1920
1921
922 !
1923 |
(924
1925
1926
1927 |
19928
Gold
production.
£m.
8-270
7-076
6-185
5-408
3-454
5-494
1.018
3-645
3-161
3-144
2-376
2-214
2-159
1-939
Stocks.
£m.
64-134
70-364
87-462
61-904
61-575
84-910
63-816
32-389
51-220
51-1
50-494
71-369
68-8156
58-06
Imports.
£m.
0-868
0-780
0-272
1-652
7-071
0-046
0-020
0-043
0-031
0-062
10-5643
0-421
0-589
1-008
Exports.
£ am,
2-908
10-758
12-015
7-389
9-180
5-634
5-465
4-877
3-301
3-812
2-043
5-489
12-303
2.740
Retained.
£m.
6-230
— 2-902
— 5-558
—0-329
3-335
—1094
—1-427
1-289
—0-119
—-0-606
10-876
— 2-854
—9-5565
—0-793
New loan.
£m.
5-1
4-3
18-6
20-9
0-5
10-8
11-3
42-2
39
48-1
0-1
37-5
11-8
54-3
Borrowing and the exigencies of war-time finance between
them forced Australian overseas trade during this period into
new channels. The inability of Europe, and of Great Britain
in particular, to supply in the old way either the capital or
consumption goods which Australia required, together with the
swelling indebtedness of Great Britain to the United States,
were responsible for the development of a trade relation among
these three countries that has been widely misunderstood.
The raising of great Australian loans in London during the war
became possible only through the huge credits placed at the
disposal of Britain by the United States. The chain was com-
pleted as far as the Commonwealth was concerned by America
furnishing a proportion of Australian imports many times
* Commonwealth Year Books, Nos. 10-21, and Quarterly Bulletins of Statistics,
Nos. 85-115.
