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LEFT INTERNATIONAL TRADE 177 INTERPRETATION some degree the inevitable horrors of warfare and to preserve a semblance of humanity and even of chivalry. The world has now before it the great prob- lem of assimilating into its scheme of Law such of these features as it may elect to retain, with suitable rules for their employment; and rejecting, once for all, those which it may see fit to eliminate. This is the task for a third Hague Conference, and the sooner such a Conference is assembled, the better it will be for humanity. It is true, of course, that the dictates of a new con- ference may be defied by some future Germany, but there is much reason to hope that the lessons of the recent war and its results will never be entirely for- gotten. INTERNATIONAL TRADE, the theory of which has caused more con- fusion among economists, statesmen and men of affairs than any other economic problem. The important question, which has been the bone of controversy, is : whether or not that country which has the balance of trade in its favor is really the gainer, or in other words, is it better for a country to export more than it imports, receiving the balance in gold? At one time, it was universally be- lieved, and it still is, to a wide extent, that the gain which any country derived from foreign trade could be estimated by the amount of money it brought into the country. Therefore it was the policy of every government to encourage exports and discourage imports, the idea being that the more exports exceeded imports, the more money, or wealth, would be brought into the country. This v/as hav- ing the "balance of trade" in its favor. If, on the other hand, imports exceeded exports, obviously gold would have to be sent out of the country and, if this continued for a long period, so it was believed, the country would be impover- ished. To guard against this, many gov- ernments gave bounties to exporters and heavy duties were imposed on imports, leading to a system of protection. Adam Smith, in his "Wealth of Na- tions," was the first to expose this fal- lacy, with so much conviction that large- ly through his influence England adopted a free trade policy, and those countries which follow a protectionist policy do so, not to interfere with foreign trade, but to encourage certain industries. The fallacy was based on the theory, or belief, that gold was actual wealth, whereas it merely represents wealth. Therefore, that gold which a countiy re- ceives for the "balance of trade" in its favor, represents the difference in vajue between the goods it has imported and those which it has exported. Having sent out of the country more actual wealth than it has received in return, obviously it is the poorer to the extent of just that difference. If this balance is only temporary, no harm results, as, at a later date, heavier imports will make up for the deficit. But should there be a continuous tendency to accumulate gold, paid for a continuous excess of exports over imports, then the country will gradually grow poorer, unless, as has been the case with England, this gold is invested in foreign counti-ies. Otherwise the increasing supply of gold has a tendency to decrease in value in- trinsically, and in the wealth it repre- sents. The nation which hoards gold, which it has received in exchange for its wealth, is inclined toward the condition of the miser, who turns all his posses- sions into money and, while theoretically very rich, is as poor as the lowest paid laborer. The highest benefits from in- ternational trade, therefore, are attained where the exchange of goods is actually trade; that is, where exports are paid for by their equivalent in value with imports. INTERPARLIAMENTARY UNION FOR INTERNATIONAL ARBITRA- TION, an association of members of the legislative branch of the different coun- tries to promote arbitration in inter- national disputes. Formed in 1888 it is chiefly famous for its St. Louis meeting in 1904, where it adopted a set of resolu- tions urging the President of the United States to call a second meeting of the Hague Conference. In compliance with this wish the President called the con- ference which in the main adhered to the program of the St. Louis meeting of the Interparliamentary Union. In 1906, at London, the Union drew ip a model arbitration treaty for the coiisideration of the nations. INTERPLEADER, in law: (1) One who interpleads. (2) The pleading or discussion of a point incidentally arising, as it were, between or in the middle of a case, before the principal cause is de- termined. Interpleader is allowed that the defendant may not be charged to two severally where no fault is in him; as where one party brings detinue against the defendant upon a bailment of goods, and another against him upon trover, there shall be interpleader to ascertain who has right to his action. INTERPRETATION, the act of inter- preting, expounding, or explaining that