_Johnson, E. R._, _Van Metre, T. W._, _Huebner, G. G._, and _Hanchett, D. S._, History of domestic and foreign commerce of the United States. 1915. *_Source Book_, 337-346. _Willis, H. P._, Transportation and competition in South American markets. A. E. Rev., 2: 814-833. 1912. QUESTIONS. 1. Is it bad policy to let the people of a suburban village spend money in the city for things that could be produced at home? 2. Is it bad policy for California to buy New England manufactures? 3. Give examples of the industrial advantages of America as compared with Europe. 4. Is the alleged superior efficiency of the American workman over the competing workman of Europe connected in any way with the principle of proportionality? 5. Community A has lands that can produce wheat at a cost of 60 cents per bushel, corn at 40 cents per bushel and potatoes at 40 cents per bushel. Community B can produce wheat at 70 cents per bushel, corn at 45 cents per bushel and potatoes at 42 cents per bushel. Supposing that each community can raise just enough of these foodstuffs for its own use, will there be any incentive for them to exchange these products? 6. "A man is of all sorts of luggage the most difficult to be transported." What is the bearing of this fact upon the theory of international trade? 7. Can a country have a persisting excess of merchandise exports over merchandise imports? If so, under what conditions? 8. If foreign exchange suddenly rose several cents, while imports and exports remained the same, to what causes might it be due? 9. If as the result of a year's foreign trade nation A obtains from other nations $10,000,000 in gold coin in settlement of the balance of international indebtedness, to what extent does that sum measure the gain of nation A from international trade? Reasons. 10. The statistics of exports and imports of the United States for the year 1908-1909 show an excess of exports over imports of $351,000,000 in merchandise; $12,000,000 in silver and $48,000,000 in gold. Explain clearly how the United States could have had an excess of exports of merchandise, silver and gold in the same year. 11. If demand exchange on London were selling at $4.835 in New York, would that indicate anything as to the relative values of our imports and exports? Would gold be shipped under these conditions and if so in which direction? Explain. 12. Explain clearly the condition of commerce under which demand sterling bills of exchange will sell at $4.875 in the New York exchange market. 13. If the merchandise imports from England to the United States equalled the exports from the United States to England, what would be the state of exchange on London? Would there be any greater advantage to either of the countries engaged in trade? 14. What effect on exchange has the holding of American bonds abroad?