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The balance of payments of the United States / by Lord Keynes
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1946] THE BALANCE OE PAYMENTS OF THE UNITED STATES 3

Table I

Indices of U.S. Industrial Production, Imports and Exports(1935-39 = 100)

1930.

1931.

1932.

1933.

1934.

1935.

1936.

1937.

1938.

1939.

Industrial

pro-

duction .

91

75

58

69

75

87

103

113

89

109

Imports

129

89

56

61

70

87

102

130

83

98

Exports .

134

85

56

59

74

80

86

117

108

110

Notes.Figures for industrial production are the Federal Reserve Board unadjusted index (1935-39 = 100). The import and export indices have beencalculated on the same basis.

involves an a priori, not a statistical, argument, which would leadus on to the question just what difference in such circumstancesthe proposed financial and economic agreements would make.I am limiting myself here to the statistical evidence and toconclusions purporting to be based on it.

Perhaps the most mistaken and most prevalent delusionrelates, however, to the creditor position of the United States to-day in relation to the rest of the world. It is commonlybelieved that the end of the war has left the United States in astrong creditor position, in addition to her large gold reserves.How many people are aware that apart from her gold holdings,which do not, of course, represent an undischarged claim on therest of the world, the United States was a debtor country onbalance at the end of 1945 % The details are as follows :

Table II

International Investment Position of the United States ,December 31, 1945. (1)

$ billion.

Assets (United States investments abroad) :Long-term:

Direct...........70

Foreign dollar bonds . . . . . . .1-9

United States Government < 3 > ...... 2-7

Miscellaneous private . . . . . . ' . 1-0

Total long-term....... 12-6

Short-term :

Private .......... 0-3

Official..........0-1

Total short-term ....... 0-4

Total assets ........ 13-0