Page:International Trade, An Application of Economic Theory.djvu/10

 The book contains no new theory, but it departs in one important particular from the treatment of international trade adopted in Great Britain by most economic writers since Ricardo and J. S. Mill. This departure consists in a simplification of the theory of foreign trade by the extension to it of the same laws as govern the rates of exchange between commodities within a single nation, This repudiation of the necessity of a separate theory for the determination of international values, if it is accepted, greatly reduces the complexity which, even in so clear and powerful a presentation as that of Professor Bastable, bewilders readers, and which in the treatment by J. S. Mill has led to hopeless entanglement and contradiction.

While limits of space forbid the use of lengthy illustrations, the statement given here claims to be distinctively concrete. It seeks to examine the most vital issues relating to free exchange and tariffs, and to vindicate the rightful authority of economic principles by showing how they explain the actual phenomena of international trade.

I desire to express my thanks to the editor of the Contemporary Review for permission to republish an article on “The Mystery of Dumping” and a portion of an article on “The Inner Meaning of