EXPORT TRADE [To the Editor of the SPECTATOR.] Sia,—Perhaps the
urgent need to find an instrument for quickly reviving our export trade may justify my drawing attention to one which, although it appears to common sense by far the most powerful and obvious, is never, so far as I am aware, discussed by contemporary economists.
Every British market is now besieged with goods of foreign origin. A tariff system to keep them, out is inept, because it hits ourselves. But where is the economic objection to our continuing to welcome them all, but buying them with exports only ? Our foreign buying continues heavy. An obvious policy for reviving our exports is to buy with nothing but them.
To pay every foreigner with a voucher for our own goods, instead of with money which he can spend anywhere, would at once cut in two directions, both in our favour. One part of the immense army of foreigners who export to Britain would be willing to take these vouchers (which, of course, they could afterwards sell) and the rest would not. Those who were not willing would relieve our markets of their presence. Those who were would automatically become buyers—directly or indirectly. I am aware that to many this bodes no change. " We already pay with our goods. What else is there to pay with ? Foreign countries will not take mere paper." And certainly the foreigner is somehow being paid ; and with goods. My only question is with whose goods ? I perfectly see that the " draft on London " which the foreigner receives from us " is " British goods if he spends it here. But why should he ? He obviously may do so, but must he, or must anyone ?
A sum represented on paper was received by him. What pulls that sum back to be changed especially into British (and not into world) goods and services ? If it were a voucher not valid except in Britain, the case would be entirely different. If Free Trade means freedom to purchase abroad with our goods, without Tariff restrictions, some form of voucher-pay- ments insuring reciprocity would seem to be the key to its
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