The task of one privileged to address an audience of serious and conscientious citizens on problems of international relations is thankless indeed. If he is anxious to do his duty and to show things as they really are, he cannot help dispelling illusions, unmasking fallacies and exhibiting the intricacy of the problems involved.

I. Terminological Remarks*

There is considerable ambiguity concerning the terminology to be used in dealing with the problems of international economic relations. It seems therefore expedient to start with a clear definition of some terms.

The task of one privileged to address an audience of serious and conscientious citizens on problems of international relations is thankless indeed.* If he is anxious to do his duty and to show things as they really are, he cannot help dispelling illusions, unmasking fallacies and exhibiting the intricacy of the problems involved.

I. Terminological Remarks*

There is considerable ambiguity concerning the terminology to be used in dealing with the problems of international economic relations. It seems therefore expedient to start with a clear definition of some terms.

Introduction*

The international division of labor was an achievement of the spirit of Liberalism. International trade has to some extent existed from the oldest times. There was a regular commerce in some commodities the production of which was limited to special geographical conditions.

Nassau William Senior’s famous lectures* on money and international trade have been newly issued by the London School of Economics and Political Science in their series of reprints.

I*

All the misfortunes from which Europe has suffered in the last two decades have been the inevitable result of the application of the theories which have dominated the social and economic philosophy of the last fifty years. Our troubles are the upshot of much laborious thought.

Introduction*

The expressions, “fluctuations in the purchasing power of gold” and “measurement of the fluctuations in the purchasing power of gold” cannot be used unless we have, at the same time, a conception of the purpose for the attainment of which it is essential to have an exact definition of these terms.