10 F. T. Lloyd-Dodd on 



foreigners are what is called an invisible export, and might 

 almost be classed under the fir-st head. On the other hand a 

 country is Dr. for services rendered it by foreign ships and 

 traders. When we consider that Britain in 1913 did about 

 one-half of the ocean carrying trade of the world, the importance 

 of this item can be realised. 



3. The third item on the balance sheet is loans and invest- 

 ments. Almost every country in the world is a borrower or a 

 lender. When a country contracts a loan, the lending country 

 is Dr. for the time being until the loan is carried out, and the 

 borrower is paid. The borrower exports securities or promises 

 to pay, and imports in return the goods or services required. 



4. The annual Interest on Capital already invested acts in 

 the opposite direction, The Investing Country is Cr. and the 

 Borrowing Country Dr. We may regard the lender as exporting 



Coupons " and the borrower has to export goods to meet them. 



5. Repayment of a loan previously incurred acts in the same 

 way as interest on the loan while outstanding. The receiving 

 country is Cr. and the repaying country Dr. We may take it 

 generally that young countries, such as Canada which have not 

 yet fully developed their railways, towns, and lands, are borrowers, 

 while older countries, with accumulated capital are lenders. 



6. The next item is a minor one compared with those 

 mentioned, but it still makes a considerable aggregate amount. 

 A country is Cr. for the earnings of its native merchants residing 

 abroad, so far as they are transmitted home. It is, of course, in 

 turn Dr. for the earnings of foreigners residing in the country. 

 It is scarcely necessary to separate from this item, the case of 

 foreigners or natives resident abroad transmitting money for 

 benevolent purposes. We have a good example of this in the 

 remittances sent home from Irish emigrants in U.S.A. and 

 elsewhere. 



7. The expenditure of a nation's Government abroad, or of 

 its citizens travelling abroad, renders a country Dr. for such 



