[309] Probably the apparent moderate increase in imports is due wholly to higher prices. The actual physical volume has possibly been reduced, as compared with the period before the War.
[310] I am indebted to several colleagues for advice and criticism in connection with these tables, particularly Professors Taussig and W. M. Persons. Mr. N. J. Silberling has been particularly helpful, aiding in the choice of the statistical sources, suggesting methods of handling and interpreting them, and making virtually all the computations in the tables.
[311] Retail prices of exports and imports are obtained by adding 50% to the wholesale figures reported, on the assumption that wholesale prices are two-thirds of retail prices. The percentages in the final column are obtained by dividing the figures for foreign trade by the figures for domestic trade. The percentage would reach 100 when foreign trade becomes equal to domestic trade.
[312] The figures in column 4 are obtained for any year, say 1905, by taking the index in column 3 for 1905, the index in column 3 for 1910, and the absolute figure in column 4 for 1910, and solving by the "rule of three."
[313] The notion of interdependence need not involve circular reasoning, if the facts really justify it. The whole cosmos is, doubtless, interdependent. Often certain systems within the cosmos manifest enough independence of the rest of the universe to justify us, for some purposes, in thinking only of interrelations within the systems. The important thing is to make the circle in theory as big as the circle in fact. Cf. Social Value, p. 152, n.
[314] In chapter XVI.
[315] Cf. our chapter, infra, on "The Quantity Theory and International Gold Movements."
[316] Italics mine.
[317] Loc. cit., p. 165.
[318] The resemblance of the view here maintained to that of Professor Laughlin is at many points close. I am indebted to his Principles of Money for many suggestions.