The International Trade Balance in Theory And Practice

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An export balance, however, appeared in the fiscal year 1915-16. The excess of exports grew to such proportions that the annual average for the years 1917-19 amounted to |409, - 000, 000. The foregoing chart reveals the gen- eral character of Canada's trade balance from the time of Confederation to 1921. The chart does not indicate the aggregate volume of imports and ex- ports, but merely the difference between them.
The excess of exports, which increased so rapidly after its appearance in 1915
..., persisted till the close of the fiscal year 1919-20. During the succeeding twelve months, ending in March, 1921, it was super- seded by a small excess of imports, amounting to 130, 000, 000.
It will be observed, from the foregoing diagram, that the import balance was most pronounced dur- ing the decade which closed in 1913. This was a period of heavy foreign borrowings on the part of Canadian governments, municipalities, and indus- try. The excess of imports in large part formed the offsetting factor to counterbalance this invis- ible credit in the form of foreign capital importa- tion.


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