INTERNATIONAL FINANCE 



Table VII. Trade of Great Britain (in Millions of s). 



75 



*Great Britain's ability to lend was interfered with by South African War. 



evidence that about 160,000,000 of British capital was supplied to Indian, Colonial 

 and foreign countries during that year. In the last 10 years Great Britain has supplied 

 other lands with about 1,200,000,000 of new capital, and the large growth of 159,- 

 000,000 in British imports since 1903 arises as to about two-thirds from the growth in 

 the income of the country from interest and services, and as to only one-third from the 

 expansion in exports. On the other hand the expansion of 200,000,000 in the exports 

 of British goods in 1912 compared with 1893 was mainly brought about by the large 

 additional sums of capital supplied by Great Britain to other lands. In brief, by 

 lending capital freely abroad Great Britain has given the outside world about 160,- 

 000,000 a year additional spending power, a sum which has passed from hand to hand 

 and from country to country, expanding consumption and production wherever the 

 influence of the credits was felt, until finally the credits were settled by exports of goods 

 to those persons and to those countries which desired to purchase British goods. 



A typical instance may be given of the effect of these great investments of capital. 

 In the last five years Great Britain has supplied Canada publicly with 176,000,000 

 of capital and privately with a considerable sum in addition. The total 

 amoun ^ s are calculated to average about 40,000,000 a year. A growth 

 of between four and five per cent per annum in the population of the 

 country, a probable expansion of nearly 100 per cent in the country's railway mileage 

 in the decade to 1915, and a several-fold expansion in the agricultural output in the 

 last ten years, show clearly the effect of these great loans of capital upon the internal 

 trade of Canada. The effect upon her foreign trade has been equally remarkable 

 (see Table VIII). In the year ending August 1903, when Great Britain supplied 

 Canada with but a small quantity of capital, the imports into the country were worth 

 only 48,000,000; but in the year ending August 1912 they were valued at no less 

 than 121,000,000. In this period (1903-12) the exports from Canada only grew 

 from 46,000,000 to 66,000,000. Thus an expansion of 73,000,000 in imports was 

 attended by a growth of only 20,000,000 in exports, the balance of 53,000,000 being 

 paid for by capital borrowed from abroad and wealth taken into the country by im- 

 migrants. The greater portion of this sum was met by the large investment of about 

 40,000,000 of British capital in Canada in 1912 in comparison with a relatively small 

 sum in 1903. 



Table VIII. Trade of Canada 12 months to August jist. (In Millions of 's). 



1911-12 1902-3 Inc. 



Imports for consumption . 

 Exports of Canadian produce 



Excess of imports 

 Gold; net imports . 



Excess of imports 







121 



66 



55 



i 



56 







4 8 

 4 6 







+73 



-f-20 



+53 

 i 



+52 



