This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1916 Excerpt: ...of $4.80, or thereabouts, means that the pound sterling does not go as far as usual in settling dollar debts. The English buyer of cotton or wheat in all markets must give more sterling to make up a given sum in dollars. The situation is, therefore, entirely reversed from what it was immediately after the War broke out ...
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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1916 Excerpt: ...of $4.80, or thereabouts, means that the pound sterling does not go as far as usual in settling dollar debts. The English buyer of cotton or wheat in all markets must give more sterling to make up a given sum in dollars. The situation is, therefore, entirely reversed from what it was immediately after the War broke out, and until late in the fall, when the balance of payments was against us and dollars were under-rated. The present situation is one which we can view, naturally, with comparative equanimity; but next to a business man's anxiety about how to pay his own debts, comes the anxiety about how other people are to pay him and continue to buy of him. The low rate for the pound sterling makes our commodities cost more to English buyers and to all buyers who must make payment from London, without any compensating advantage to us. It is equivalent to a tax on our commerce, and amounts to an obstruction between us and our customers. It is not a very large percentage yet--about one cent on a dollar--but with trade balances piling up as they have been in the last three months, it will be larger, unless some means are found to effect settlements. "How large will this credit become? This is a question which we cannot answer at the moment. The course of trade is now heavily in favour of the United States. In August last, there was a balance against us of $19,400,396. Since then there have been monthly balances in our favour, as follows: September, $16,341,722; October, $56,630,650; November, $79,411,271; December, $130,976,013; January, $145,730,996; February, $174,682,478; March (estimated), $157,000,000. The facts already given indicate that the monthly sums which the American people needed to send abroad for interest and for other purposes are not much...
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