180 Transactions. — Miscellaneous. 



The case of the United States is not an exception, for, although 

 we have found that during the period considered she exported 

 in the total an excess of nearly £15,000,000 of gold, yet when 

 we allow for the production of gold in that country, which 

 amounted to £188,000,000 in the same period, we find she had 

 £173,000,000 for home use. This amount is considerably larger 

 than for any one of the other three countries, but no more per- 

 haps than might be relatively expected from the rapid increase 

 in the numbers and wealth of the population. 



It will be noticed that the import of gold by the non-gold- 

 producing nations has been greatly stimulated of recent years. 

 This is a consequence of the greatly increased production of gold. 

 The large amounts of gold produced can only find an outlet by 

 finding their way into the various countries, and to a large extent 

 into the several currencies, enlarging the same and producing 

 higher prices. The amounts of the excesses of imports of gold 

 we have considered above would have been much less again but 

 for this cause. 



It is not difficult to see that the use of gold in commerce is 

 thus limited, because it could not well be otherwise. Even if a 

 nation were minded to pay for her imports with gold, she would 

 find it impossible to achieve her object. If it were possible to 

 export every coin in the country, any one of the great countries 

 we have been considering would, in attempting the feat, be left 

 without coinage in a few months.* The United Kingdom, if she 

 paid in gold even only for the excess of her imports over her 

 exports, would be without gold in about six months only. 



But, as commerce is actually carried out, the importer does 

 not send a box of gold in payment for his goods, nor does the 

 exporter receive any such, but gold or credit, and generally 

 credit, is passed on to a fellow-townsman or fellow-countryman. 

 What passes between nation and nation consists mainly of drafts 

 and bills of exchange. The rates of exchange tend to resist even 

 the passage of the smallest amount of gold, and, by discouraging 

 imports if they tend to come in in excess and encouraging exports, 

 or vice versa, tend to make the imports and exports keep their 

 proper balance as determined by the several factors of inter- 

 national indebtedness, without the passage of gold. 



To quote the words of Professor Nicholson : " If there is at 

 any time an excess of imports into a country, the importers 

 (through their brokers or agents or correspondents) will find that 

 they must pay more lor foreign hills. This increase of cost will 

 no doubt affecl all, hut not to the same extent. Some of the 



* The Director of the United States Mint estimated the stocks of gold 

 in these countries to be: United Kingdom, £91,000.000: I'nited States. 



tl'.lL'.l 100.1)00; (lermany. £138,000, •: France. £167,< KX). 



