Show IMPOSTS IMPORTS PAY FOR EXPORTS liuying anil and selling are arc only different sides of the same transaction by an all odd coincidence we send fend more goods to 36 nations than we lye bring from them and we import from others more than we send t to 0 them but as a whole our imports are simply imply the pay for our exports it must not lot be supposed when W we c aa gay imports are the pay for exports that the lie man mail who sends goods from this country recel cs his hi pay in the pods goods of other countries that is ithe the final result of tile the transaction but it is accomplished complis hed by ft a maze inaze of transfers and re rc transfers made apy b brok brokers f rs I 1 eacle 1 1 ach man mail sells for cash M which in international commerce is merely y another n name ime for credit it is it a slip of paper a check or letter of credit which lie ile an apply to the purchase of goods to bring 6 b backor ack or liane habit it cas cashed lied at any great bank or lie can call invest it in foreign bu aless or bonds this er credit edit is 0 good for its fico face value in all any country 1 in the world and is berred hourly by mail or telegraph from one country to another with perfect safety thus A in N new deiv york sends ft a carvo cargo of wheat worth 1000 to london through a london bank lie receives a check good for that amount on the new york banks and lie draws liis his money from one of them then B in london sends ends a ago of cloth worth 1000 to this country and receives receive s a check for that amount orb oil a london bank and draws his money leach each bank is thus indebted to the other to the extent of 1000 and the lie accounts between them are arc canceled the wheat thus pays for tile cloth though it is not directly bartered for it no nation can call pay for what aliat it buys in 0 guld gold there is not enough gold in exist existence cuce to pay for a single years export and ini imports ports of great britain alone all trade between nations couii consists ts at bottome of ag ag changing in their products of labor |