346 
en 
INTERNATIONAL TRADE 
goods, the substantive course of international trade, the eventual 
price situation in the trading countries, the barter terms of trade, 
are affected. 
An early and almost immediate effect clearly is to stimulate the 
movement of goods from the remitting country (Great Britain) 
to the receiving country (United States). The British traders 
who sell goods in the United States receive more than before for 
the dollar exchange which they can put on the market. There is 
something like a bounty on British exports, felt first by the mer- 
chants and middlemen, soon by the producers. The extent and 
the duration of that bounty depend on the conditions under which 
the goods are produced in Great Britain. If they are produced 
solely for export, the bounty will be large and will last for some 
time. Altho goods in stock may be pushed for export more 
rapidly when the movement begins, altho the first stage may be 
merely that of taking up the slack, no really effective addition 
to the quantity exported can take place until more of the goods are 
produced ; and that takes time, perhaps much time. Such would 
be the case, for example, with coffee exported from Brazil; the 
domestic consumption is negligible, the export sale dominant, the 
output very constant. If, however, there is a substantial domestic 
consumption — if the output had previously been marketed partly 
at home and partly in the United States — there would be some 
shift from the domestic market to the foreign, and so some addi- 
tional export of goods, some additional supply of dollar exchange 
in London. Exchange will not rise in London as high as would 
have been the case without these further exports. The extent 
of the addition to the supply of dollar exchange will depend on the 
extent to which consumption and sales in the domestic market are 
curtailed. At the other extreme would be the case where the 
domestic consumption had previously absorbed the greater portion 
of the output, and the export had been but a small portion. Here 
there is more easily a shift from the domestic market to the foreign, 
and a larger and quicker addition to the supply of dollar exchange. 
The extent and speed of these adjustments will be affected 
obviously by the elasticity of the domestic demand. If that be