TRADE BALANCE AND GOLD [To the Editor of the SPECTATOR.]
SIR,—Mr. Robbins, in his article in the Spectator of Octo- ber 24th says that Exports and Imports balance, once you are off Gold. This would be the case if our currency was always used in payment, but I find our importers have to contract to pay in gold currency, in effect, they are buying gold and handing it over in payment, thus nullifying the effects that would naturally accrue to our export trade if our currency were used.
I would suggest that there are only two ways of insuring that we really balance our imports with our exports. One way is to control imports by any means found suitable, such as Import Boards, Quota or Tariff ; this would mean restriction of imports. The other way is to put an embargo on the export of gold or gold currency. This would compel, say, Russia, when she flooded our markets with wheat, to take goods in payment, so that her shipments here would be regulated by her capacity to absorb our manufactures ; if America wanted our markets she would almost certainly have to lower her tariff walls through time, as also would other countries.
We see the effect of the gold standard and tariffs in most countries, and I am of opinion that the other course is worth at least very close investigation. I doubt if any other country in the world could lead in this, except Britain, and I doubt if there will ever arise a more favourable opportunity than now.—I am, Sir, &c.,
J. AUCHMUTY.
Previous page
