ABSTRACT
In dealing with trade between two countries each of which has a currency of paper inconvertible in practice, whether technically so or not, some peculiarities of the problem of international trade find particularly characteristic expression. For dealings within either country, a level of prices is established dependent on the volume of the paper circulation and the amount of business to be carried on by its means. The various commodities are sold at prices which register the effective expenses of production in each case, while the proportions between the prices of different commodities furnish a measure of the relative intensity of demand for those commodities.
