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International Economics 18th 18th

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International
Economics

Eighteenth Edition

Robert J. Carbaugh
Professor of Economics, Central Washington University

Australia ● Brazil ● Canada ● Mexico ● Singapore ● United Kingdom ● United States

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Robert J. Carbaugh
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Brief Contents

Preface ���������������������������������������������������������������������������������������������������������������� xi
About the Author������������������������������������������������������������������������������������������� xviii
Chapter 1 The International Economy and Globalization����������������������������� 1

Part 1 International Trade Relations    21


Chapter 2 Foundations of Modern Trade Theory: Comparative
Advantage...................................................................................... 23
Chapter 3 Sources of Comparative Advantage������������������������������������������� 61
Chapter 4 Tariffs�������������������������������������������������������������������������������������������� 91
Chapter 5 Nontariff Trade Barriers������������������������������������������������������������� 135
Chapter 6 Trade Regulations and Industrial Policies�������������������������������� 163
Chapter 7 Trade Policies for the Developing Nations������������������������������� 199
Chapter 8 Regional Trading Arrangements����������������������������������������������� 233
Chapter 9 International Factor Movements and Multinational
Enterprises................................................................................... 259

Part 2 International Monetary Relations    285


Chapter 10 The Balance of Payments���������������������������������������������������������� 287
Chapter 11 Foreign Exchange����������������������������������������������������������������������� 313
Chapter 12 Exchange-Rate Determination��������������������������������������������������� 349
Chapter 13 Exchange-Rate Adjustments and the
Balance of payments������������������������������������������������������������������ 375
Chapter 14 Exchange-Rate Systems and Currency Crises������������������������� 393
Chapter 15 Macroeconomic Policy in an Open Economy�������������������������� 421

Glossary ����������������������������������������������������������������������������������������������������������� 437

Index ���������������������������������������������������������������������������������������������������������������� 449

iii

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Contents

Preface ������������������������������������������������������������������������������������������������������������������ xi
About the Author ��������������������������������������������������������������������������������������������� xviii
Chapter 1

The International Economy and Globalization����������������������������������������1


Diesel Engines and Gas Turbines as Movers COVID-19 and Globalization�������������������������� 12
of Globalization������������������������������������������������� 3 Common Fallacies of International Trade����������������������������� 15
Globalization of Economic Activity������������������������������������������ 4 Is International Trade an Opportunity
Waves of Globalization��������������������������������������������������������������� 5 or a Threat to Workers?������������������������������������������������������ 16
First Wave of Globalization: 1870–1914����������������������������� 6 Has Globalization Gone Too Far?������������������������������������������� 18
Second Wave of Globalization: 1945–1980������������������������ 6
The Plan of This Text���������������������������������������������������������������� 19
Third Wave of Globalization������������������������������������������������ 7
Is Globalization in Decline?�������������������������������������������������� 8 Summary������������������������������������������������������������������������������������� 20
The United States as an Open Economy����������������������������������� 8 Key Concepts and Terms���������������������������������������������������������� 20
Trade Patterns������������������������������������������������������������������������� 8 Study Questions�������������������������������������������������������������������������� 20
Labor and Capital����������������������������������������������������������������� 11

Part 1 International Trade Relations 21

Chapter 2

Foundations of Modern Trade Theory: Comparative Advantage������� 23


Historical Development of Modern Trade Theory��������������� 23 Babe Ruth and the Principle
The Mercantilists������������������������������������������������������������������ 23 of Comparative Advantage���������������������������� 44
Why Nations Trade: Absolute Advantage������������������������ 25 The Impact of Trade on Jobs���������������������������������������������������� 45
Adam Smith and David Ricardo�������������������� 27 Comparative Advantage Extended to Many
Why Nations Trade: Comparative Advantage����������������� 28 Products and Countries������������������������������������������������������� 47
Production Possibilities Frontiers�������������������������������������������� 31 More Than Two Products��������������������������������������������������� 47
Trading under Constant-Cost Conditions����������������������������� 32 More Than Two Countries������������������������������������������������� 48
Basis for Trade and Direction of Trade����������������������������� 32 Factor Mobility, Exit Barriers, and Trade������������������������������� 49
Production Gains from Specialization������������������������������ 33 Empirical Evidence on Comparative Advantage������������������� 50
Consumption Gains from Trade���������������������������������������� 34
The Case for Free Trade������������������������������������������������������������ 53
Distributing the Gains from Trade������������������������������������ 35
Adjustment Costs of Trade������������������������������������������������� 54
Equilibrium Terms of Trade����������������������������������������������� 36
Terms of Trade Estimates��������������������������������������������������� 37 Comparative Advantage and Global Supply
Chains: Outsourcing������������������������������������������������������������ 54
Changing Comparative Advantage����������������������������������������� 39
Summary������������������������������������������������������������������������������������� 57
Trading under Increasing-Cost Conditions��������������������������� 41
Increasing-Cost Trading Case�������������������������������������������� 42 Key Concepts and Terms���������������������������������������������������������� 58
Partial Specialization������������������������������������������������������������ 44 Study Questions�������������������������������������������������������������������������� 58

iv

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Chapter 3

Sources of Comparative Advantage������������������������������������������������������ 61


Factor Endowments as a Source Intra-Industry Trade������������������������������������������������������������������ 77
of Comparative Advantage������������������������������������������������� 61 Technology as a Source of Comparative
The Factor-Endowment Theory���������������������������������������� 62 Advantage: The Product Cycle Theory����������������������������� 78
Visualizing the Factor-Endowment Theory��������������������� 64
Dynamic Comparative Advantage: Industrial Policy������������������ 79
Globalization Drives Changes
Government Regulatory Policies and Comparative
for U.S. Automakers��������������������������������������� 67 Advantage������������������������������������������������������������������������������ 82
Factor-Price Equalization: The Stolper–Samuelson
Theorem��������������������������������������������������������������������������� 68 Transportation Costs and Comparative Advantage�������������������� 84
Specific-Factors Theory: Trade and the Trade Effects������������������������������������������������������������������������� 84
Distribution of Income in the Short Run�������������������� 71 Falling Transportation Costs Foster Trade����������������������������� 85
Does Trade Make the Poor Even Poorer?������������������������� 72 Summary������������������������������������������������������������������������������������� 88
Economies of Scale and Comparative Advantage����������������� 74 Key Concepts and Terms���������������������������������������������������������� 89
Internal Economies of Scale������������������������������������������������ 74 Study Questions�������������������������������������������������������������������������� 89
External Economies of Scale����������������������������������������������� 75
Exploring Further����������������������������������������������������������������������� 90
Overlapping Demands as a Basis for Trade���������������������������� 76

Chapter 4

Tariffs�������������������������������������������������������������������������������������������������������� 91
The Tariff Concept��������������������������������������������������������������������� 92 How a Tariff Burdens Exporters�������������������������������������������� 115
Types of Tariffs��������������������������������������������������������������������������� 93 Tariffs and the Poor: Regressive Tariffs�������������������������������� 117
Specific Tariff������������������������������������������������������������������������ 93 Could a Higher Tariff Put a Dent
Ad Valorem Tariff���������������������������������������������������������������� 94
in the Federal Debt?�������������������������������������� 119
Compound Tariff����������������������������������������������������������������� 94
Arguments for Trade Restrictions����������������������������������������� 120
Effective Rate of Protection������������������������������������������������������ 95
Job Protection��������������������������������������������������������������������� 120
Trade Protectionism Intensified as Global Protection against Cheap Foreign Labor������������������������ 121
Economy Fell into the Great Recession�������� 97 Fairness in Trade: A Level Playing Field������������������������� 123
Tariff Escalation������������������������������������������������������������������������� 98 Maintenance of the Domestic Standard
of Living������������������������������������������������������������������������� 124
Outsourcing and Offshore-Assembly Provision�������������������� 99
Equalization of Production Costs������������������������������������ 124
Dodging Import Tariffs: Tariff Avoidance and Infant-Industry Argument������������������������������������������������ 125
Tariff Evasion���������������������������������������������������������������������� 100 Noneconomic Arguments������������������������������������������������� 125
Postponing Import Tariffs������������������������������������������������������ 102 The Political Economy of Protectionism������������������������������ 127
Bonded Warehouse������������������������������������������������������������ 102 A Supply and Demand View of
Foreign-Trade Zone����������������������������������������������������������� 103 Protectionism���������������������������������������������������������������� 128
Tariff Effects: An Overview���������������������������������������������������� 104 Was the U.S. Trade War with China
Tariff Welfare Effects: Consumer Surplus Worth It?������������������������������������������������������������������������ 129
and Producer Surplus�������������������������������������������������������� 105 Petition of the Candle Makers��������������������� 131
Tariff Welfare Effects: Small-Nation Model������������������������� 106 Summary����������������������������������������������������������������������������������� 131
Tariff Welfare Effects: Large-Nation Model������������������������� 109 Key Concepts and Terms�������������������������������������������������������� 132
The Optimal Tariff and Retaliation��������������������������������� 113 Study Questions������������������������������������������������������������������������ 132
Examples of U.S. Tariffs���������������������������������������������������������� 113 Exploring Further��������������������������������������������������������������������� 134

Contents v

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Chapter 5

Nontariff Trade Barriers�������������������������������������������������������������������������135


Absolute Import Quota����������������������������������������������������������� 135 Antidumping Regulations������������������������������������������������������� 152
Trade and Welfare Effects������������������������������������������������� 136 Is Antidumping Law Unfair?�������������������������������������������������� 155
Allocating Quota Licenses������������������������������������������������� 138 Should Average Variable Cost Be the
Quotas versus Tariffs��������������������������������������������������������� 139 Yardstick for Defining Dumping?������������������������������ 155
Tariff-Rate Quota: A Two-Tier Tariff����������������������������������� 141 Should Antidumping Law Reflect
Export Quotas��������������������������������������������������������������������������� 142 Currency Fluctuations?������������������������������������������������ 156
Domestic Content Requirements������������������������������������������ 144 Other Nontariff Trade Barriers���������������������������������������������� 156
Government Procurement Policies: “Buy American”�������� 157
How American Is Your Car?������������������������� 146 Social Regulations��������������������������������������������������������������� 158
Subsidies������������������������������������������������������������������������������������ 146 CAFE Standards����������������������������������������������������������������� 158
Domestic Production Subsidy������������������������������������������ 147 Summary����������������������������������������������������������������������������������� 159
Export Subsidy�������������������������������������������������������������������� 148
Key Concepts and Terms�������������������������������������������������������� 160
Dumping����������������������������������������������������������������������������������� 149
Forms of Dumping������������������������������������������������������������� 149 Study Questions������������������������������������������������������������������������ 160
International Price Discrimination���������������������������������� 150 Exploring Further��������������������������������������������������������������������� 162

Chapter 6

Trade Regulations and Industrial Policies��������������������������������������������163


U.S. Tariff Policies Before 1930���������������������������������������������� 163 Would a Carbon Tariff Help Solve
Smoot–Hawley Act������������������������������������������������������������������ 165 the Climate Problem?������������������������������������180
Reciprocal Trade Agreements Act����������������������������������������� 166 Antidumping Duties: Protection against Foreign Dumping���� 181
Remedies against Dumped and Subsidized Imports����� 181
General Agreement on Tariffs and Trade����������������������������� 167
Trade without Discrimination������������������������������������������ 167 Section 301: Protection against Unfair Trading Practices�������� 183
Promoting Freer Trade������������������������������������������������������ 168 Protection of Intellectual Property Rights���������������������������� 184
Predictability: Through Binding and Trade-Adjustment Assistance������������������������������������������������ 186
Transparency����������������������������������������������������������������� 168 Trade-Adjustment Assistance for Workers, Firms,
Multilateral Trade Negotiations��������������������������������������� 169 Farmers, and Fishermen���������������������������������������������� 186
World Trade Organization����������������������������������������������������� 171 Industrial Policies of the United States��������������������������������� 187
Settling Trade Disputes����������������������������������������������������� 172 The Export-Import Bank�������������������������������������������������� 188
Does the WTO Reduce National
Sovereignty?������������������������������������������������������������������ 173 Strategic Trade Policy�������������������������������������������������������������� 191
Does the WTO Harm the Environment?������������������������ 174 Economic Sanctions����������������������������������������������������������������� 193
Future of the World Trade Organization�������������������������������� 176 Factors Influencing the Success of Sanctions����������������������� 194
Trade Promotion Authority Summary����������������������������������������������������������������������������������� 197
(Fast-Track Authority)������������������������������������������������������ 177 Key Concepts and Terms�������������������������������������������������������� 197
Safeguards (the Escape Clause): Emergency Study Questions������������������������������������������������������������������������ 198
Protection from Imports��������������������������������������������������� 177
Exploring Further��������������������������������������������������������������������� 198
Countervailing Duties: Protection against
Foreign Export Subsidies��������������������������������������������������� 179

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Chapter 7

Trade Policies for the Developing Nations�������������������������������������������199


Developing Nation Trade Characteristics���������������������������� 200 Generalized System of Preferences���������������������������������� 218
Tensions between Developing Nations Does Aid Promote Growth of Developing Nations?����� 218
and Advanced Nations������������������������������������������������������ 201 Economic Growth Strategies: Import
Trade Problems of the Developing Nations������������������������� 201 Substitution versus Export-Led Growth������������������������� 219
Unstable Export Markets�������������������������������������������������� 202 Import Substitution����������������������������������������������������������� 219
Worsening Terms of Trade����������������������������������������������� 203 Export-Led Growth������������������������������������������������������������ 221
Limited Market Access������������������������������������������������������ 204 Is Economic Growth Good for the Poor?����������������������� 222
Agricultural Export Subsidies of Advanced Nations�������� 206 Can All Developing Nations Achieve
Export-Led Growth?���������������������������������������������������� 222
Does Foreign Direct Investment Hinder
East Asian Economies�������������������������������������������������������������� 223
or Help Economic Development?���������������� 207
Flying Geese Pattern of Growth��������������������������������������� 224
Stabilizing Primary-Product Prices��������������������������������������� 208
China’s Great Leap Forward��������������������������������������������������� 224
Production and Export Controls�������������������������������������� 209
“Made in China 2025”������������������������������������������������������� 225
Buffer Stocks����������������������������������������������������������������������� 209
Challenges and Concerns for China’s
Multilateral Contracts�������������������������������������������������������� 210
Economy������������������������������������������������������������������������ 226
The OPEC Oil Cartel��������������������������������������������������������������� 212 Forced Technology Transfer and China������������������������� 227
Maximizing Cartel Profits������������������������������������������������� 212
India: Breaking Out of the Third World������������������������������� 230
OPEC as a Cartel���������������������������������������������������������������� 214
Summary����������������������������������������������������������������������������������� 231
Aiding the Developing Nations���������������������������������������������� 215
The World Bank����������������������������������������������������������������� 215 Key Concepts and Terms�������������������������������������������������������� 232
International Monetary Fund������������������������������������������� 217 Study Questions������������������������������������������������������������������������ 232

Chapter 8

Regional Trading Arrangements���������������������������������������������������������� 233


Regional Integration versus Multilateralism������������������������ 233 The Eurozone—Europe’s Monetary Union������������������������� 248
Types of Regional Trading Arrangements��������������������������� 235 Optimal Currency Area����������������������������������������������������� 249
The Eurozone as a Suboptimal Currency
Impetus for Regionalism��������������������������������������������������������� 236
Area: Problems and Challenges���������������������������������������250
A Trans-Pacific Partnership?������������������������ 237 North American Free Trade Agreement:
Effects of a Regional Trading Arrangement������������������������� 237 United States–Mexico–Canada Agreement������������������� 250
Static Effects������������������������������������������������������������������������ 238 NAFTA’s Benefits and Costs for
Dynamic Effects������������������������������������������������������������������ 240 Mexico and Canada������������������������������������������������������ 251
The European Union��������������������������������������������������������������� 241 NAFTA’s Benefits and Costs for the United States������� 252
Pursuing Economic Integration��������������������������������������� 241 Summary����������������������������������������������������������������������������������� 255
Agricultural Policy������������������������������������������������������������� 243 Key Concepts and Terms�������������������������������������������������������� 256
Is the European Union Really a Common Market?������ 245
Britain Withdraws from the European Study Questions������������������������������������������������������������������������ 256
Union (Brexit)��������������������������������������������������������������� 246 Exploring Further��������������������������������������������������������������������� 257

Chapter 9

International Factor Movements and Multinational Enterprises��������� 259


The Multinational Enterprise������������������������������������������������� 259 Demand Factors����������������������������������������������������������������� 262
Motives for Foreign Direct Investment��������������������������������� 262 Cost Factors������������������������������������������������������������������������� 262

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Will Manufacturers Exit China for Vietnam? Multinational Enterprises as a Source of Conflict������������������� 273
It Is Difficult to Do������������������������������������������������ 263 Employment������������������������������������������������������������������������ 273
Supplying Products to Foreign Buyers: National Sovereignty���������������������������������������������������������� 274
Whether to Produce Domestically or Abroad��������������� 264 Transfer Pricing������������������������������������������������������������������ 274
Direct Exporting versus Foreign Direct International Labor Mobility: Migration������������������������������ 275
Investment/Licensing��������������������������������������������������� 264 The Effects of Migration���������������������������������������������������� 275
Foreign Direct Investment versus Licensing������������������ 266 Immigration as an Issue���������������������������������������������������� 278
Country Risk Analysis������������������������������������������������������������� 267 U.S. Immigration Laws������������������������������������������������������ 279
Is International Trade a Substitute for
Foreign Auto-Assembly Plants in the United States����������� 268 Migration?��������������������������������������������������������������������� 281
International Joint Ventures��������������������������������������������������� 269 Summary����������������������������������������������������������������������������������� 281
Welfare Effects�������������������������������������������������������������������� 270
Key Concepts and Terms�������������������������������������������������������� 282
Harley Sends Some of Its Production
Study Questions������������������������������������������������������������������������ 282
Abroad as Europeans Raise Tariffs������������� 272

Part 2 International Monetary Relations 285

Chapter 10

The Balance of Payments��������������������������������������������������������������������� 287


Double-Entry Accounting������������������������������������������������������ 287 Impact of Capital Flows on the Current
Example 1���������������������������������������������������������������������������� 288 Account�������������������������������������������������������������������������� 300
Example 1���������������������������������������������������������������������������� 288 Business Cycles, Economic Growth,
International Payments Process������������������ 289 and the Current Account�������������������������������������������� 301
Do Current Account Deficits Cost
Balance-of-Payments Structure���������������������������������������������� 290 Americans Jobs?������������������������������������������������������������ 303
Current Account����������������������������������������������������������������� 290 Can the United States Continue to Run
Capital and Financial Account����������������������������������������� 291 Current Account Deficits Indefinitely?��������������������� 303
Special Drawing Rights������������������������������������������������������ 293
Statistical Discrepancy: Errors and Omissions������������������������294 Balance of International Indebtedness���������������������������������� 305
United States as a Debtor Nation������������������������������������� 305
U.S. Balance of Payments�������������������������������������������������������� 294
The Dollar as the World’s Reserve Currency����������������������� 306
What Does a Current Account Deficit Benefits to the United States��������������������������������������������� 306
(Surplus) Mean?����������������������������������������������������������������� 297 Will the Special Drawing Right or the
The iPhone’s Complex Supply Chain Depicts Yuan Become a Reserve Currency?���������������������������� 307
Limitations of Trade Statistics�������������������� 297 Summary����������������������������������������������������������������������������������� 309
Net Foreign Investment and the Current
Key Concepts and Terms�������������������������������������������������������� 310
Account Balance����������������������������������������������������������� 298
Study Questions������������������������������������������������������������������������ 310

Chapter 11

Foreign Exchange���������������������������������������������������������������������������������� 313


Foreign-Exchange Market������������������������������������������������������ 313 Forward and Futures Markets������������������������������������������������ 322
Foreign Currency Trading Becomes Automated ������������������� 315 Foreign Currency Options ����������������������������������������������������� 325
Types of Foreign-Exchange Transactions���������������������������� 316 Exchange-Rate Determination ���������������������������������������������� 325
Interbank Trading�������������������������������������������������������������������� 318 Demand for Foreign Exchange ���������������������������������������� 326
Supply of Foreign Exchange��������������������������������������������� 326
Reading Foreign-Exchange Quotations�������������������������������� 320
Equilibrium Rate of Exchange������������������������������������������ 327

viii Contents

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Indexes of the Foreign-Exchange Value of the Dollar: Uncovered Interest Arbitrage������������������������������������������� 337
Nominal and Real Exchange Rates�������������������������������������������� 328 Covered Interest Arbitrage (Reducing Currency Risk)������� 339
The Forward Market���������������������������������������������������������� 331 Foreign-Exchange Market Speculation��������������������������������� 340
The Forward Rate��������������������������������������������������������������� 331 Long and Short Positions�������������������������������������������������� 340
Relation between the Forward Rate and the Spot Rate�������� 332 How to Play the Falling (Rising) Dollar�������������������������� 342
Managing Your Foreign-Exchange Risk:
Foreign-Exchange Trading as a Career��������������������������������� 343
Forward Foreign-Exchange Contract������������������������ 333
Foreign-Exchange Traders Hired by Commercial
Case 1����������������������������������������������������������������������������������� 334
Banks, Companies, and Central Banks���������������������� 343
Case 2����������������������������������������������������������������������������������� 334
Do You Really Want to Trade Currencies?���������������������������� 344
Does Foreign Currency Hedging Pay Off?����������������������������� 336
Summary����������������������������������������������������������������������������������� 345
Currency Risk and the Hazards
of Investing Abroad�������������������������������������� 336 Key Concepts and Terms�������������������������������������������������������� 346

Interest Arbitrage, Currency Risk, and Hedging����������������� 337 Study Questions������������������������������������������������������������������������ 346
Exploring Further��������������������������������������������������������������������� 347

Chapter 12

Exchange-Rate Determination������������������������������������������������������������� 349


What Determines Exchange Rates?��������������������������������������� 349 Expected Change in the Exchange Rate�������������������������� 363
Determining Long-Run Exchange Rates������������������������������ 351 Diversification, Safe Havens, and Investment Flows���� 364
Relative Price Levels����������������������������������������������������������� 351 International Comparisons of GDP:
Relative Productivity Levels���������������������������������������������� 352 Purchasing Power Parity������������������������������ 365
Preferences for Domestic or
Exchange Rate Overshooting������������������������������������������������� 366
Foreign Goods��������������������������������������������������������������� 352
Trade Barriers��������������������������������������������������������������������� 353 Forecasting Foreign-Exchange Rates������������������������������������ 367
Judgmental Forecasts��������������������������������������������������������� 368
Inflation Rates, Purchasing Power Parity,
Technical Forecasts������������������������������������������������������������ 368
and Long-Run Exchange Rates����������������������������������������� 354
Fundamental Analysis������������������������������������������������������� 370
Law of One Price���������������������������������������������������������������� 354
Exchange-Rate Misalignment������������������������������������������� 370
Banks Found Guilty of Foreign-Exchange Summary����������������������������������������������������������������������������������� 371
Market Rigging���������������������������������������������� 356
Key Concepts and Terms�������������������������������������������������������� 372
Purchasing-Power-Parity�������������������������������������������������� 357
Study Questions������������������������������������������������������������������������ 372
Determining Short-Run Exchange Rates:
The Asset Market Approach��������������������������������������������� 359 Exploring Further��������������������������������������������������������������������� 373
Relative Levels of Interest Rates��������������������������������������� 360

Chapter 13

Exchange-Rate Adjustments and the Balance of Payments��������������������� 375


Effects of Exchange-Rate Changes on Will Currency Depreciation Reduce a Trade
Costs and Prices ����������������������������������������������������������������� 375 Deficit? The Elasticity Approach�������������������������������������� 380
Case 1: No Foreign Sourcing—All Case 1: Improved Trade Balance�������������������������������������� 381
Costs Are Denominated in Dollars ��������������������������� 375 Case 2: Worsened Trade Balance������������������������������������� 382
Case 2: Foreign Sourcing—Some Costs Denominated in J-Curve Effect: Time Path of Depreciation �������������������������� 384
Dollars and Some Costs Denominated in Francs������ 376
Exchange-Rate Pass-Through������������������������������������������������ 385
Cost-Cutting Strategies of Manufacturers Partial Exchange-Rate Pass-Through ����������������������������� 385
in Response to Currency Appreciation �������������������������� 378
Appreciation of the Dollar: U.S. Manufacturers ����������� 379 Does Currency Depreciation Stimulate
Exports?��������������������������������������������������������� 387
Japanese Firms Send Work Abroad as
The Absorption Approach to Currency Depreciation�������� 388
Rising Yen Makes Their Products Less
Competitive��������������������������������������������������� 380 The Monetary Approach to Currency Depreciation���������� 389
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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Summary����������������������������������������������������������������������������������� 390 Study Questions������������������������������������������������������������������������ 391
Key Concepts and Terms�������������������������������������������������������� 391 Exploring Further��������������������������������������������������������������������� 391

Chapter 14

Exchange-Rate Systems and Currency Crises������������������������������������ 393


Exchange-Rate Practices��������������������������������������������������������� 393 Exchange-Rate Stabilization and
Choosing an Exchange-Rate System: Monetary Policy ����������������������������������������������������������� 407
Constraints Imposed by Free Capital Flows������������������� 395 The Crawling Peg��������������������������������������������������������������������� 409
Fixed Exchange-Rate System�������������������������������������������������� 396 Currency Manipulation and Currency Wars����������������������� 409
Use of Fixed Exchange Rates ������������������������������������������� 396 Currency Crises ����������������������������������������������������������������� 411
Russia’s Central Bank Fails to Offset The Global Financial Crisis of 2007–2009������� 413
the Ruble’s Collapse������������������������������������� 398 Capital Controls����������������������������������������������������������������������� 414
Par Value and Official Exchange Rate ���������������������������� 398 Should Foreign-Exchange Transactions
Exchange-Rate Stabilization �������������������������������������������� 399 Be Taxed? ���������������������������������������������������������������������� 415
Devaluation and Revaluation ������������������������������������������ 400
Increasing the Credibility of Fixed Exchange Rates������������������� 416
Bretton Woods System of Fixed Exchange Rates ��������� 401
Currency Board ����������������������������������������������������������������� 416
Floating Exchange Rates��������������������������������������������������������� 402 Dollarization ���������������������������������������������������������������������� 418
Achieving Market Equilibrium ��������������������������������������� 402
Summary����������������������������������������������������������������������������������� 419
Arguments for and against Floating Rates ����������������������������� 404
Key Concepts and Terms�������������������������������������������������������� 420
Managed Floating Rates���������������������������������������������������������� 405
Managed Floating Rates in the Study Questions������������������������������������������������������������������������ 420
Short Run and Long Run �������������������������������������������� 405

Chapter 15

Macroeconomic Policy in an Open Economy������������������������������������� 421


Economic Objectives of Nations�������������������������������������������� 421 Macroeconomic Stability and the Current Account:
Policy Instruments������������������������������������������������������������������� 422 Policy Agreement versus Policy Conflict���������������������������� 429
Aggregate Demand and Aggregate Supply: Inflation with Unemployment����������������������������������������������� 430
A Brief Review�������������������������������������������������������������������� 422 International Economic Policy Coordination���������������������� 430
Monetary and Fiscal Policies in a Closed Economy������������������� 423 Policy Coordination in Theory���������������������������������������� 431
Does Policy Coordination Work?������������������������������������ 433
Monetary and Fiscal Policies in an Open Economy������������������ 425
Effect of Fiscal and Monetary Policies Does Crowding Occur in an Open
under Fixed Exchange Rates��������������������������������������� 426 Economy?������������������������������������������������������ 434
Effect of Fiscal and Monetary Policies Summary����������������������������������������������������������������������������������� 434
under Floating Exchange Rates���������������������������������� 427
Key Concepts and Terms�������������������������������������������������������� 435
Monetary and Fiscal Policies Respond to Study Questions������������������������������������������������������������������������ 435
economic Turmoil: The Great Recession
Exploring Further��������������������������������������������������������������������� 435
of 2007–2009 and Covid-19�������������������������� 428

Glossary ������������������������������������������������������������������������������������������������������������� 437


Index ������������������������������������������������������������������������������������������������������������������ 449
x Contents

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Preface

I believe the best way to motivate students to learn a subject is to demonstrate how it is used
in practice. The first seventeen editions of International Economics reflected this belief and
were written to provide a serious presentation of international economic theory with an
emphasis on current applications. Adopters of these editions strongly supported the inte-
gration of economic theory with current events.
The eighteenth edition has been revised with an eye toward improving this presentation
and updating the applications as well as including the latest theoretical developments. Like
its predecessors, this edition is intended for use in a one-quarter or one-semester course for
students having no more background than principles of economics. This book’s strengths
are its clarity, organization, and applications that demonstrate the usefulness of theory to
students. The revised and updated material in this edition emphasizes current applications
of economic theory and incorporates recent theoretical and policy developments in inter-
national trade and finance. Here are some examples.

International Economics Themes


This edition highlights five current themes that are at the forefront of international
economics:
Globalization of Economic Activity
●● COVID-19 and the global economy—Ch. 1 and 15
●● Red Wing Shoe Company faces challenges when producing
in the United States—Ch. 1
●● Industrial robots and job losers—Ch. 2
●● Trump’s “America First” policy and globalization—Ch. 1
●● Stanley Black and Decker move back to the United States—Ch. 1
●● Is international trade an opportunity or a threat to workers?—Ch. 1
●● Is international trade responsible for the loss of American jobs?—Ch. 3
●● Shifting competitiveness in shipping routes—Ch. 3
●● How containers revolutionized the world of shipping—Ch. 3
●● Factor mobility, exit barriers, and trade—Ch. 2
●● Dynamic gains from digital trade—Ch. 2
●● Wooster, Ohio, bears brunt of globalization—Ch. 2
●● Comparative advantage and global supply chains—Ch. 2
●● Caterpillar bulldozes Canadian locomotive workers—Ch. 9
●● Diesel engines and gas turbines as engines of growth—Ch. 1
●● Waves of globalization—Ch. 1
●● Constraints imposed by capital flows on the choice of an exchange rate
system—Ch. 15
Free Trade and Protectionism
●● Joe Biden and buy American laws—Ch. 5
●● American boat makers tread water under Trump—Ch. 4
xi

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●● Does trade with China take away blue-collar American jobs?—Ch. 3
●● Would a tariff wall protect American jobs?—Ch. 4
●● Donald Trump’s border tax: How to pay for the wall—Ch. 4
●● Vaughan Basset Furniture and dumping—Ch. 5
●● United States lifts its restrictions on oil exports—Ch. 6
●● U.S. Export-Import Bank avoids shutdown—Ch. 6
●● Whirlpool agitates for antidumping tariffs on clothes washers—Ch. 5
●● Wage increases and China’s trade—Ch. 3
●● Government procurement policies and buy American—Ch. 5
●● Carbon tariffs—Ch. 6
●● Carrier agrees to keep jobs in Indiana—Ch. 6
●● Lumber imports from Canada—Ch. 6
●● Bangladesh’s sweatshop reputation—Ch. 7
●● Does the principle of comparative advantage apply in the face of job
outsourcing?—Ch. 2
●● Trade adjustment assistance—Ch. 6
●● North Korea and economic sanctions—Ch. 6
●● WTO rules against subsidies to Boeing and Airbus—Ch. 6
●● Does wage insurance make free trade more acceptable to workers?—Ch. 6
●● China’s hoarding of rare earth metals declared illegal by WTO—Ch. 6
●● The environment and free trade—Ch. 6
Trade Conflicts between Developing Nations and Industrial Nations
●● Made in China 2025—Ch. 7
●● Forced technology transfer and China—Ch. 7
●● Russia hit by sanctions over Ukraine—Ch. 6
●● U.S. economic sanctions and Iran—Ch. 6
●● China’s economic challenges—Ch. 7
●● U.S.-Mexico tomato dispute—Ch. 8
●● Canada’s immigration policy—Ch. 9
●● Is international trade a substitute for migration?—Ch. 3
●● Economic growth strategies—import substitution versus export-led growth—Ch. 7
●● Does foreign aid promote the growth of developing countries?—Ch. 7
●● The globalization of intellectual property rights—Ch. 7
●● Microsoft scorns China’s piracy of software—Ch. 7
●● China’s export boom comes at a cost: How to make factories play fair—Ch. 7
●● Do U.S. multinationals exploit foreign workers?—Ch. 9
Liberalizing Trade: The WTO versus Regional Trading Arrangements
●● Modernizing NAFTA: The USMCA—Ch. 8
●● Britain’s exit from the European Union—Ch. 8
●● Free-trade agreements bolster Mexico—Ch. 8
●● Does the WTO reduce national sovereignty?—Ch. 6
●● Regional integration versus multilateralism—Ch. 8
●● Will the euro survive?—Ch. 8
Turbulence in the Global Financial System
●● Will crypto currencies lower the dollar’s status as the world’s reserve currency?—Ch. 10
●● Computer software programs and arbitrage—Ch. 11
●● Foreign currency trading becomes automated—Ch. 11
xii Preface

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●● Is Trump’s trade doctrine misguided?—Ch. 10
●● Germany’s current account surplus—Ch. 10
●● Reserve currency burdens for the United States—Ch. 11
●● Exchange rate misalignments—Ch. 12
●● Does currency depreciation stimulate exports?
●● China announces currency independence—Ch. 16
●● People’s Bank of China punishes speculators—Ch. 11
●● Currency manipulation and currency wars—Ch. 15
●● Paradox of foreign debt: How the United States borrows at low cost—Ch. 10
●● Why a dollar depreciation may not close the U.S. trade deficit—Ch. 14
●● Japanese firms send work abroad as yen makes its products less
competitive—Ch. 14
●● Preventing currency crises: Currency boards versus dollarization—Ch. 15
●● Should the United States return to the gold standard?—Ch. 17

Organizational Framework: Exploring Further Sections


Although instructors generally agree on the basic content of the international economics
course, opinions vary widely about what arrangement of material is appropriate. This book
is structured to provide considerable organizational flexibility. The topic of international
trade relations is presented before international monetary relations, but the order can be
reversed by instructors choosing to start with monetary theory. Instructors can begin with
Chapters 10–15 and conclude with Chapters 2–9. Those who do not wish to cover all the
material in the book can easily omit all or parts of Chapters 6–9 and Chapters 14–15
without loss of continuity.
The eighteenth edition streamlines its presentation of theory to provide greater flexi-
bility for instructors. This edition uses online Exploring Further sections to discuss more
advanced topics. By locating the Exploring Further sections online rather than in the text-
book, as occurred in previous editions, more textbook coverage can be devoted to contem-
porary applications of theory. The Exploring Further sections consist of the following:
■■ Comparative advantage in money terms—Ch. 2
■■ Indifference curves and trade—Ch. 2
■■ Offer curves and the equilibrium terms of trade—Ch. 2
■■ The specific-factors theory—Ch. 3
■■ Offer curves and tariffs—Ch. 4
■■ Tariff-rate quota welfare effects—Ch. 5
■■ Export quota welfare effects—Ch. 5
■■ Welfare effects of strategic trade policy—Ch. 6
■■ Government procurement policy and the European Union—Ch. 8
■■ Economies of scale and NAFTA—Ch. 8
■■ Techniques of foreign-exchange market speculation—Ch. 11
■■ A primer on foreign-exchange trading—Ch. 11
■■ Fundamental forecasting–regression analysis—Ch. 12
■■ Income adjustment mechanism—Ch. 13
■■ Exchange-rate pass-through—Ch. 14
To access the Exploring Further sections, go to www.cengagebrain.com.

Preface xiii

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Supplementary Materials
For Instructors
PowerPoint Slides The eighteenth edition also includes PowerPoint slides. These slides
can be easily downloaded from cengage.com. Slides may be edited to meet individual
needs. They may also serve as a study tool for students.

Instructor’s Manual To assist instructors in the teaching of international economics, there


is an Instructor’s Manual that accompanies the eighteenth edition, available at cengage.com.

Acknowledgments
I am pleased to acknowledge those who aided me in preparing the current and past editions
of this textbook. Helpful suggestions and often detailed reviews were provided by:
■■ Burton Abrams, University of Delaware
■■ Richard Adkisson, New Mexico State University
■■ Richard Anderson, Texas A & M
■■ Brad Andrew, Juniata College
■■ Joshua Ang, Rogers State University
■■ Richard Ault, Auburn University
■■ Sofyan Azaizeh, University of New Haven
■■ Mohsen Bahmani-Oskooee, University of Wisconsin—Milwaukee
■■ Kevin Balsam, Hunter College
■■ J. Bang, St. Ambrose University
■■ Kelvin Bentley, Baker College Online
■■ Robert Blecker, Stanford University
■■ Scott Brunger, Maryville College
■■ Jeff W. Bruns, Bacone College
■■ Roman Cech, Longwood University
■■ John Charalambakis, Asbury College
■■ Mitch Charkiewicz, Central Connecticut State University
■■ Xiujian Chen, California State University, Fullerton
■■ Miao Chi, University of Wisconsin—Milwaukee
■■ Charles Chittle, Bowling Green University
■■ Howard Cochran, Jr., Belmont University
■■ Christopher Cornell, Fordham University
■■ Elanor Craig, University of Delaware
■■ Manjira Datta, Arizona State University
■■ Ann Davis, Marist College
■■ Earl Davis, Nicholls State University
■■ Juan De La Cruz, Fashion Institute of Technology
■■ Firat Demir, University of Oklahoma
■■ Gopal Dorai, William Paterson College
■■ Veda Doss, Wingate University
■■ Seymour Douglas, Emory University
■■ Carolyn Fabian Stumph, Indiana University—Purdue University Fort Wayne
■■ Daniel Falkowski, Canisius College
xiv Preface

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■■ Farideh Farazmand, Lynn University
■■ Patrice Franko, Colby College
■■ Emanuel Frenkel, University of California—Davis
■■ Norman Gharrity, Ohio Wesleyan University
■■ Sucharita Ghosh, University of Akron
■■ Jean-Ellen Giblin, Fashion Institute of Technology (SUNY)
■■ Leka Gjolaj, Baker College
■■ Thomas Grennes, North Carolina State University
■■ Darrin Gulla, University of Kentucky
■■ Li Guoqiang, University of Macau (China)
■■ William Hallagan, Washington State University
■■ Jim Hanson, Willamette University
■■ Bassam Harik, Western Michigan University
■■ Clifford Harris, Northwood University
■■ John Harter, Eastern Kentucky University
■■ Seid Hassan, Murray State University
■■ Phyllis Herdendorf, Empire State College (SUNY)
■■ Pershing Hill, University of Alaska—Anchorage
■■ David Hudgins, University of Oklahoma
■■ Ralph Husby, University of Illinois—Urbana/Champaign
■■ Robert Jerome, James Madison University
■■ Mohamad Khalil, Fairmont State College
■■ Abdullah Khan, Kennesaw State University
■■ Wahhab Khandker, University of Wisconsin—La Crosse
■■ Robin Klay, Hope College
■■ William Kleiner, Western Illinois University
■■ Anthony Koo, Michigan State University
■■ Faik Koray, Louisiana State University
■■ Peter Karl Kresl, Bucknell University
■■ Fyodor Kushnirsky, Temple University
■■ Daniel Lee, Shippensburg University
■■ Edhut Lehrer, Northwestern University
■■ Jim Levinsohn, University of Michigan
■■ Martin Lozano, University of Manchester, UK
■■ Benjamin Liebman, St. Joseph’s University
■■ Susan Linz, Michigan State University
■■ Andy Liu, Youngstown State University
■■ Alyson Ma, University of San Diego
■■ Mike Marks, Georgia College School of Business
■■ Al Maury, Texas A&I University
■■ Michael McCully, High Point University
■■ Jose Mendez, Arizona State University
■■ Neil Meredith, West Texas A&M University
■■ Roger Morefield, University of St. Thomas
■■ John Muth, Regis University
■■ Tony Mutsune, Iowa Wesleyan College
■■ Mary Norris, Southern Illinois University
■■ John Olienyk, Colorado State University

Preface xv

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■■ Shawn Osell, Minnesota State University—Mankato
■■ Terutomo Ozawa, Colorado State University
■■ Peter Petrick, University of Texas at Dallas
■■ William Phillips, University of South Carolina
■■ Gary Pickersgill, California State University, Fullerton
■■ John Polimeni, Albany College of Pharmacy and Health Sciences
■■ Rahim Quazi, Prairie View A&M University
■■ Elisa Quennan, Taft College
■■ Chuck Rambeck, St. John’s University
■■ Teresita Ramirez, College of Mount Saint Vincent
■■ Elizabeth Rankin, Centenary College of Louisiana
■■ Surekha Rao, Indiana University Northwest
■■ James Richard, Regis University
■■ Suryadipta Roy, High Point University
■■ Daniel Ryan, Temple University
■■ Manabu Saeki, Jacksonville State University
■■ Nindy Sandhu, California State University, Fullerton
■■ Jeff Sarbaum, University of North Carolina, Greensboro
■■ Anthony Scaperlanda, Northern Illinois University
■■ William Schlosser, Lewis and Clark State College
■■ Juha Seppälä, University of Illinois
■■ Ben Slay, Middlebury College (now at PlanEcon)
■■ Gordon Smith, Anderson University
■■ Sylwia Starnawska, SUNY Empire State College
■■ Steve Steib, University of Tulsa
■■ Robert Stern, University of Michigan
■■ Paul Stock, University of Mary Hardin—Baylor
■■ Laurie Strangman, University of Wisconsin—La Crosse
■■ Hamid Tabesh, University of Wisconsin–River Falls
■■ Manjuri Talukdar, Northern Illinois University
■■ Nalitra Thaiprasert, Ball State University
■■ William Urban, University of South Florida
■■ Jorge Vidal, The University of Texas Pan American
■■ Adis M. Vila, Esq., Winter Park Institute Rollins College
■■ Grace Wang, Marquette University
■■ Jonathan Warshay, Baker College
■■ Darwin Wassink, University of Wisconsin—Eau Claire
■■ Peter Wilamoski, Seattle University
■■ Harold Williams, Kent State University
■■ Chong Xiang, Purdue University
■■ Afia Yamoah, Hope College
■■ Hamid Zangeneh, Widener University
I would like to thank my colleagues at Central Washington University—Tennecia Dacass,
Yurim Lee, Peter Gray, Koushik Ghosh, Peter Saunders, Toni Sipic, and Chad Wassell—for
their advice and help while I was preparing the manuscript. I am also indebted to Shirley
Hood who provided advice in the manuscript’s preparation and to Jeff Stinson for his sup-
port as Dean of the College of Business at Central Washington University. Special thanks to

xvi Preface

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Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.
Terutomo Ozawa, Emeritus Professor of Economics, Colorado State University, whose
teaching and research in international economics inspired my interest in this field.
It has been a pleasure to work with the staff of Cengage Learning, especially Chris Rader
(Product Manager) and Jennifer Ziegler (Senior Project Manager) who provided many
valuable suggestions and assistance in seeing this edition to its completion. Thanks also to
Charu Verma (Vendor Content Manager) who orchestrated the content development of
this book. I also appreciate the meticulous efforts that Heather Mann did in the copyediting
of this textbook. Finally, I am grateful to my students, as well as faculty and students at other
universities, who provided helpful comments on the material contained in this new
edition.
I would appreciate any comments, corrections, or suggestions that faculty or students
wish to make so I can continue to improve this text in the years ahead. Please contact me!
Thank you for permitting this text to evolve to the eighteenth edition.

Bob Carbaugh
Department of Economics
Central Washington University
Ellensburg, Washington 98926
Email: Carbaugh@cwu.edu

Preface xvii

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About the Author

When students take my economics courses at Central Washington University, on the first
day of class I ask them to stand up, go around the classroom, and meet all of the other stu-
dents in the class. I feel that we are a community of learners and that getting to know each
other is very important. So allow me to tell you a little about myself and how I became the
author of International Economics.
I was born in the year that the famous British economist, John Maynard Keynes died
(you can look it up if you wish). I proudly remind my fellow economists that this allows me
to be the successor of Keynes, and that since that time all great ideas come from me. How-
ever, I can’t figure out why they are not impressed with my conclusion—to me, it seems
obvious. But it should be noted that I was born without much hair, and I maintain this
characteristic even today.
Growing up in Spokane, Washington, I came from a family of Mom and Dad and five
brothers and sisters. We lived in a modest three-bedroom house with one bathroom and
bunk beds for the kids. It was at this time that I first learned about productivity in terms of
not tying up the bathroom. Also, I enthusiastically played baseball from little-league
through high school. I was a pitcher who threw a fastball (it wasn’t that fast), a roundhouse
curveball, and a change-up. Being able to hit for a high percentage, I played left field while
not pitching. I also played club hockey, competed in local golf tournaments, and eventually
got into running 10K races.
As for music, 1950s rock was fun. Looking back in life, I wish that I had learned to play
a saxophone so I could have played in a 50s rock band. However, the folk music of the late
1950s and 1960s had the biggest musical influence on my life, and it still does. Without
musical background, my friends and I bought cheap guitars and learned how to play folk
songs while listening to 33 1/3 LPs (not CDs) by groups such as the Kingston Trio, Brothers
Four, and New Christy Minstrels. One of my friends became the banjo player with the
Brothers Four, which still makes CDs and plays at concerts worldwide.
By the time I went to Gonzaga University, I was becoming quite serious about my educa-
tion, and I enjoyed being challenged by my professors and fellow students. To help finance
my college education, I worked at many part-time jobs: I washed dishes at the student
dining hall, pumped gas and performed mechanical work at gasoline stations, stocked bot-
tles of liquor on the shelves of the Garland Liquor Store, drove a delivery truck with cement
blocks for the Spokane Block Co., bailed hay for farmers, and so on. These were learning
experiences. In 1969 I graduated from Gonzaga with a bachelor’s degree in economics and
a minor in philosophy/theology. It was at this time that I met my wife, Cathy—we now have
four daughters and nine grandchildren.
While attending Lewis and Clark High School, I thought about becoming a high school
social studies teacher. But along came economics classes at Gonzaga and I found a college
major that I was very excited about. During my junior year, one of my professors had to
miss two of his principles of economics classes. After my pleading with him, he allowed me
to be his substitute teacher, and I presented lectures dealing with supply and demand. A
“light bulb” turned on in my head, and I knew what career I wanted to pursue—a college
economics professor. But this required getting an advanced degree in economics. So off

xviii

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Another random document with
no related content on Scribd:
faintest reflection in the pages of this diary. Even the Mischianza—
that marvellous combination of ball, banquet, and tournament—is
dismissed in a few brief sentences. “Ye scenes of Vanity and Folly,”
says the home-staying Quaker wife, though still without any
rancorous disapprobation of the worldly pleasures in which she has
no share. To withstand steadfastly the allurements of life, yet pass no
censure upon those who yield to them, denotes a gentle breadth of
character, far removed from the complacent self-esteem of the “unco
guid.” When a young English officer, whom Elizabeth Drinker is
compelled to receive under her roof, gives an evening concert in his
rooms, and the quiet house rings for the first time with music and
loud voices, her only comment on the entertainment is that it was
“carried on with as much soberness and good order as the nature of
the thing admitted.” And when he invites a dozen friends to dine with
him, she merely records that “they made very little noise, and went
away timeously.” It is a good tonic to read any pages so free from
complaints and repining.
The diary bears witness to the sad distress of careless
merrymakers when the British army prepared to take the field, to the
departure of many prominent Tories with Admiral Howe’s fleet, and
to the wonderful speed and silence with which Sir Henry Clinton
withdrew his forces from Philadelphia. “Last night,” writes Elizabeth
on the 18th of June, 1778, “there were nine thousand of ye British
Troops left in Town, and eleven thousand in ye Jerseys. This
morning, when we arose, there was not one Red-Coat to be seen in
Town, and ye Encampment in ye Jerseys had vanished.”
With the return of Congress a new era of discomfort began for
the persecuted Friends, whose houses were always liable to be
searched, whose doors were battered down, and whose windows
were broken by the vivacious mob; while the repeated seizures of
household effects for unpaid war taxes soon left rigid members of
the society—bound at any cost to obey the dictates of their
uncompromising consciences—without a vestige of furniture in their
pillaged homes. “George Schlosser and a young man with him came
to inquire what stores we have,” is a characteristic entry in the
journal. “Looked into ye middle room and cellar. Behaved
complaisant. Their authority, the Populace.” And again: “We have
taxes at a great rate almost daily coming upon us. Yesterday was
seized a walnut Dining Table, five walnut Chairs, and a pair of large
End-Irons, as our part of a tax for sending two men out in the Militia.”
This experience is repeated over and over again, varied occasionally
by some livelier demonstrations on the part of the “populace,” which
had matters all its own way during those wild years of misrule. When
word came to Philadelphia that Lord Cornwallis had surrendered, the
mob promptly expressed its satisfaction by wrecking the houses of
Friends and Tory sympathizers. “We had seventy panes of glass
broken,” writes Elizabeth calmly, “ye sash lights and two panels of
the front Parlour broke in pieces; ye Door cracked and violently burst
open, when they threw stones into ye House for some time, but did
not enter. Some fared better, some worse. Some Houses, after
breaking ye door, they entered, and destroyed the Furniture. Many
women and children were frightened into fits, and ’tis a mercy no
lives were lost.”
When peace was restored and the federal government firmly
established, these disorders came to an end; a new security reigned
in place of the old placid content; and a new prosperity, more
buoyant but less solid than that of colonial days, gave to
Philadelphia, as to other towns, an air of gayety, and habits of
increased extravagance. We hear no more of the men who went with
clubs from shop to shop, “obliging ye people to lower their prices,”—
a proceeding so manifestly absurd that “Tommy Redman, the
Doctor’s apprentice, was put in prison for laughing as ye Regulators
passed by.” We hear no more of houses searched or furniture carted
away. Elizabeth Drinker’s diary begins to deal with other matters,
and we learn to our delight that this sedate Quakeress was
passionately fond of reading romances;—those alluring, long-
winded, sentimental, impossible romances, dear to our great-
grandmothers’ hearts. It is true she does not wholly approve of such
self-indulgence, and has ever ready some word of excuse for her
own weakness; but none the less “The Mysteries of Udolpho” and its
sister stories thrill her with delicious emotions of pity and alarm. “I
have read a foolish romance called ‘The Haunted Priory; or the
Fortunes of the House of Rayo,’” she writes on one occasion; “but I
have also finished knitting a pair of large cotton stockings, bound a
petticoat, and made a batch of gingerbread. This I mention to show
that I have not spent the whole day reading.” Again she confesses to
completing two thick volumes entitled “The Victim of Magical
Illusions; or the Mystery of the Revolution of P—— L——,” which
claimed to be a “magico-political tale, founded on historic fact.” “It
may seem strange,” she muses, “that I should begin the year,
reading romances. ’Tis a practice I by no means highly approve, yet I
trust I have not sinned, as I read a little of most things.”
She does indeed, for we find her after a time dipping into—of all
books in the world—Rabelais, and retiring hastily from the
experiment. “I expected something very sensible and clever,” she
says sadly, “but on looking over the volumes I was ashamed I had
sent for them.” Mary Wollstonecraft’s “Vindication of the Rights of
Women” pleases her infinitely better; though she is unwilling to go so
far as the impetuous Englishwoman, in whom reasonableness was
never a predominant trait. Unrestricted freedom, that curbless
wandering through doubtful paths which end in social pitfalls, offered
no allurement to the Quaker wife in whom self-restraint had become
second nature; but her own intelligence and her practical capacity for
affairs made her respect both the attainments and the prerogatives
of her sex. In fact, she appears to have had exceedingly clear and
definite opinions upon most matters which came within her ken, and
she expresses them in her diary without diffidence or hesitation. The
idol of the Revolutionary period was Tom Paine; and when we had
established our own republic, the enthusiasm we felt for republican
France predisposed us still to believe that Paine’s turbulent
eloquence embodied all wisdom, all justice, and all truth. In
Philadelphia the French craze assumed more dangerous and absurd
proportions than in any other city of the Union. Her once decorous
Quaker streets were ornamented with liberty-poles and flower-strewn
altars to freedom, around which men and women, girls and boys,
danced the carmagnole, and shrieked wild nonsense about tyrants
and the guillotine. The once quiet nights were made hideous with
echoes of “Ça ira” and the Marseillaise. Citizens, once sober and
sensible, wore the bonnet rouge, exchanged fraternal embraces,
recited mad odes at dinners, and played tricks fantastic enough to
plunge the whole hierarchy of heaven into tears,—or laughter. “If
angels have any fun in them,” says Horace Walpole, “how we must
divert them!” Naturally, amid this popular excitation, “The Rights of
Man” and “The Age of Reason” were the best-read books of the day,
and people talked about them with that fierce fervour which forbade
doubt or denial.
Now Elizabeth Drinker was never fervent. Hers was that critical
attitude which unconsciously, but inevitably, weighs, measures, and
preserves a finely adjusted mental balance. She read “The Age of
Reason,” and she read “The Rights of Man,” and then she read
Addison’s “Evidences of the Christian Religion,” by way of putting
her mind in order, and then she sat down and wrote:—
“Those who are capable of much wickedness are, if their minds
take a right turn, capable of much good; and we must allow that Tom
Paine has the knack of writing, or putting his thoughts and words into
method. Were he rightly inclined, he could, I doubt not, say ten times
as much in favour of the Christian religion as he has advanced
against it. And if Lewis ye 17th were set up as King of France, and a
sufficient party in his favour, and Paine highly bribed or flattered, he
would write more for a monarchical government than he has ever
written on the other side.”
Yet orthodoxy alone, unsupported by intellect, had scant charm
for this devout Quakeress. She wanted, as she expresses it,
thoughts and words put into method. Of a most orthodox and pious
little book, which enjoyed the approbation of her contemporaries, she
writes as follows: “Read a pamphlet entitled ‘Rewards and
Punishments; or Satan’s Kingdom Aristocratical,’ written by John
Cox, a Philadelphian, in verse. Not much to the credit of J. C. as a
poet, nor to the credit of Philadelphia; tho’ the young man may mean
well, and might perhaps have done better in prose.”
“Pilgrim’s Progress,” however, she confesses she has read three
times, and finds that, “tho’ little thought of by some,” she likes it
better and better with each fresh reading. Lavater she admires as a
deep and original thinker, while mistrusting that he has “too good a
conceit” of his own theories and abilities; and the “Morals” of
Confucius she pronounces “a sweet little piece,” and finer than most
things produced by a more enlightened age.
This is not a bad showing for those easy old days, when the
higher education of women had not yet dawned as a remote
possibility upon any mind; and when, in truth, the education of men
had fallen to a lower level than in earlier colonial times. Philadelphia
was sinking into a stagnant mediocrity, her college had been robbed
of its charter, and the scholarly ambitions (they were never more
than ambitions) of Franklin’s time were fading fast away. Even
Franklin, while writing admirable prose, had failed to discover any
difference between good and bad verse. His own verse is as
cheerfully and comprehensively bad as any to be found, and he
always maintained that men should practise the art of poetry, only
that they might improve their prose. This purely utilitarian view of the
poet’s office was not conducive to high thinking or fine criticism; and
Elizabeth Drinker was doubtless in a very small minority when she
objected to “Satan’s Kingdom Aristocratical,” on the score of its
halting measures.
The most striking characteristic of our Quaker diarist is precisely
this clear, cold, unbiased judgment, this sanity of a well-ordered
mind. What she lacks, what the journal lacks from beginning to end,
is some touch of human and ill-repressed emotion, some word of
pleasant folly, some weakness left undisguised and unrepented. The
attitude maintained throughout is too judicial, the repose of heart and
soul too absolute to be endearing. Here is a significant entry,
illustrating as well as any other this nicely balanced nature, which
gave to all just what was due, and nothing more:—
“There has been a disorder lately among ye cats. Our poor old
Puss, who has been for some time past unwell, died this morning, in
ye 13th year of her age. Peter dug a grave two feet deep on ye bank
in our garden, under ye stable window, where E. S., Peter and I saw
her decently interred. I had as good a regard for her as was
necessary.”
Was ever affection meted out like this? Was there ever such
Quaker-like precision of esteem? For thirteen years that cat had
been Elizabeth Drinker’s companion, and she had acquired for her
just as good a regard as was necessary, and no more. It was not
thus Sir Walter spoke, when Hinse of Hinsdale lay dead beneath the
windows of Abbotsford, slain by the great staghound, Nimrod. It was
not thus that M. Gautier lamented the consumptive Pierrot. It is not
thus that the heart mourns, when a little figure, friendly and familiar,
sits no longer by our desolate hearth.
FRENCH LOVE-SONGS

Quand on est coquette, il faut être sage;


L’oiseau de passage
Qui vole à plein cœur
Ne dort pas en l’air comme une hirondelle,
Et peut, d’un coup d’aile,
Briser une fleur.
—Alfred de Musset.

The literature of a nation is rooted in national characteristics. Foreign


influences may dominate it for a time; but that which is born of the
soil is imperishable, and must, by virtue of tenacity, conquer in the
end. England, after the Restoration, tried very hard to be French,
and the “happy and unreflecting wantonness” of her earlier song was
chilled into sobriety by the measured cadences of Gallic verse; yet
the painful and perverse effort to adjust herself to strange conditions
left her more triumphantly English than before. We are tethered to
our kind, and the wisest of all wise limitations is that which holds us
well within the sphere of natural and harmonious development.
It is true, however, that nationality betrays itself less in lyrics,
and, above all, less in love lyrics, than in any other form of literature.
Love is a malady, the common symptoms of which are the same in
all patients; and though love-songs—like battle-songs and drinking-
songs—are seldom legitimate offsprings of experience, they are
efforts to express in words that sweet and transient pain. “Les âmes
bien nées”—without regard to birthplace—clearly of their passion,
and seek their “petit coin de bonheur” under Southern and Northern
skies. The Latin races have, indeed, depths of reserve underlying
their apparent frankness, and the Saxons have a genius for self-
revelation underlying their apparent reticence; but these traits count
for little in the refined duplicity of the love-song.
Garde bien ta belle folie!
has been its burden ever since it was first chanted by minstrel lips.
M. Brunetière frankly admits the inferiority of the French lyric, an
inferiority which he attributes to the predominance of social
characteristics in the literature, as in the life of France. When poetry
is compelled to fulfil a social function, to express social conditions
and social truths, to emphasize fundamental principles and balance
contrasted forces, the founts of lyrical inspiration are early dried.
Individualism is their source,—the sharp, clear striking of the
personal note; and the English, says M. Brunetière, excel in this
regard. “To Lucasta. Going to the Warres,” has no perfect
counterpart in the love-songs of other lands.
Even the eager desire of the Frenchman to be always intelligible
(“That which is not lucid is not French”) militates against the
perfection of the lyric. So too does his exquisite and inborn sense of
proportion. “Measure,” says Mr. Brownell, “is a French passion;” but
it is a passion that refuses to lend itself to rapturous sentiment.
Et veut que l’on soit sage avec sobriété
is hardly a maxim to which the genius of the love-song gives willing
ear. Rather is she the La Belle Dame sans Merci, or the Elfin Lady
who rode through the forests of ancient France.

My sire is the nightingale,


That sings, making his wail,
In the wild wood, clear;
The mermaid is mother to me,
That sings in the salt sea,
In the ocean mere.

“What,” asks Mr. Brownell hopelessly, “has become of this Celtic


strain in the French nature?”—a strain which found vent in the
“poésie courtoise,” playful, amorous, laden with delicate subtleties
and fond conceits. This poesie—once the delight of Christendom—
echoes still in Petrarch’s sonnets and in Shakespeare’s madrigals;
but it is difficult to link its sweet extravagances with the chiselled
verse of later days, and critics forget the past in their careful
contemplation of the present. “French poetry,” says Mr. Zangwill,
“has always leant to the frigid, the academic, the rhetorical,—in a
word, to the prosaic. The spirit of Boileau has ruled it from his cold
marble urn.”
But long before Boileau lay in his urn—or in his cradle—the
poets of France, like the poets of Albion, sang with facile grace of
love, and dalliance, and the glory of youth and spring. The fact that
Boileau ignored and despised their song, and taught his obedient
followers to ignore and despise it also, cannot silence those early
notes. When he descended frigidly to his grave, Euterpe tucked up
her loosened hair, and sandalled her bare white feet, and girdled her
disordered robes into decent folds. Perhaps it was high time for
these reforms. Nothing is less seductive in middle age than the
careless gayety of youth. But once France was young, and Euterpe
a slip of a girl, and no grim shadow of that classic urn rested on the
golden days when Aucassin—model of defiant and conquering
lovers—followed Nicolette into the deep, mysterious woods.

Jeunesse sur moy a puissance,


Mais Vieillesse fait son effort
De m’avoir en sa gouvernance,

sang Charles d’Orléans, embodying in three lines the whole history


of man and song. Youth was lusty and folly riotous when Ronsard’s
mistress woke in the morning, and found Apollo waiting patiently to
fill his quiver with arrows from her eyes; or when Jacques Tahureau
watched the stars of heaven grow dim before his lady’s brightness;
or when Vauquelin de la Fresnaye saw Philis sleeping on a bed of
lilies, regardless of discomfort, and surrounded by infant Loves.
J’admirois toutes ces beautez
Égalles à mes loyautez,
Quand l’esprit me dist en l’oreille:
Fol, que fais-tu? Le temps perdu
Souvent est chèrement vendu;
S’on le recouvre, c’est merveille.

Alors, je m’abbaissai tout bas,


Sans bruit je marchai pas à pas,
Et baisai ses lèvres pourprines:
Savourant un tel bien, je dis
Que tel est dans le Paradis
Le plaisir des âmes divines.

With just such sweet absurdities, such pardonable insincerities,


the poets of Elizabeth’s England fill their amorous verse. George
Gascoigne “swims in heaven” if his mistress smiles upon him; John
Lyly unhesitatingly asserts that Daphne’s voice “tunes all the
spheres;” and Lodge exhausts the resources of the vegetable and
mineral kingdoms in searching for comparisons by which to set forth
the beauties of Rosalind. The philosophy of love is alike on both
sides of the Channel, and expressed in much the same terms of soft
insistence. Carpe diem is, and has always been, the lover’s maxim;
and the irresistible eloquence of the lyric resolves itself finally into
these two words of warning, whether urged by Celt or Saxon. Herrick
is well aware of their supreme significance when he sings:—

Gather ye rose-buds while ye may,


Old Time is still a-flying:
And this same flower that smiles to-day,
To-morrow will be dying.
Then be not coy, but use your time,
And while ye may, go marry;
For having lost but once your prime,
You may forever tarry.

Ronsard, pleading with his mistress, strikes the same relentless


note:—

Donc, si vous me croyez, Mignonne,


Tandis que vostre âge fleuronne
En sa plus vert nouveauté,
Cueillez, cueillez vostre jeunesse;
Comme à cette fleur, la vieillesse
Fera ternir vostre beauté.

May-day comes alike in England and in France. Herrick and


Jean Passerat, poets of Devonshire and of Champagne, are equally
determined that two fair sluggards, who love their pillows better than
the dewy grass, shall rise from bed, and share with them the
sparkling rapture of the early dawn. Herrick’s verse, laden with the
freshness of the Spring, rings imperatively in Corinna’s sleepy
ears:—

Get up, get up, for shame! The blooming Morn


Upon her wings presents the god unshorn.
See how Aurora throws her fair
Fresh-quilted colours through the air.
Get up, sweet Slug-a-bed, and see
The dew bespangling herb and tree.

And then—across the gayety of the song—the deepening note of


persuasion strikes a familiar chord:—
Come, let us go, while we are in our prime;
And take the harmless folly of the time!
We shall grow old apace, and die
Before we know our liberty.

Passerat is no less insistent. The suitors of the sixteenth and


seventeenth centuries seem to have dedicated the chill hours of
early morning to their courtship. Nor was the custom purely pastoral
and poetic. When Lovelace makes his appointments with Clarissa
Harlowe at five A. M., the modern reader—if Richardson has a
modern reader—is wont to think the hour an unpropitious one; but to
Herrick and to the Pléiade it would have seemed rational enough.

Laissons le lit et le sommeil


Ceste journée:
Pour nous, l’Aurore au front vermeil
Est desjà née

sings the French poet beneath his lady’s window; adding, to


overcome her coyness—or her sleepiness—the old dominant
argument:—

Ce vieillard, contraire aus amans,


Des aisles porte,
Et en fuyant, nos meilleurs ans
Bien loing emporte.
Quand ridée un jour tu seras,
Mélancholique, tu diras:
J’estoy peu sage,
Qui n’usoy point de la beauté
Que si tost le temps a osté
De mon visage.
No less striking is the similarity between the reproachful couplets
in which the singers of England and of France delight in denouncing
their unfaithful fair ones, or in confessing with harmonious sighs the
transient nature of their own emotions. Inconstancy is the breath of
love’s nostrils, and the inspiration of love’s songs, which enchant us
because they express an exquisite sentiment in its brief moment of
ascendency. The tell-tale past, the dubious future, are alike
discreetly ignored. Love in the drama and in the romance plays
rather a heavy part. It is too obtrusively omniscient. It is far too self-
assertive. Yet the average taxpayer, as has been well remarked, is
no more capable of a grand passion than of a grand opera. The
utmost he can achieve is some fair, fleeting hour, and with the
imperative gladness of such an hour the love-song thrills
sympathetically. It is not its business to

recapture
That first fine careless rapture.

It does not essay the impossible.


Now the old and nameless French poet who wrote—

Femme, plaisir de demye heure,


Et ennuy qui sans fins demeure,

was perhaps too ungraciously candid. Such things, when said at all,
should be said prettily.

Sigh no more, ladies, sigh no more,—


Men were deceivers ever;
One foot in sea, and one on shore,
To one thing constant never.
Gay voices came bubbling with laughter from the happy days
that are dead. Sir John Suckling, whose admirable advice to an
overfaithful young suitor has been the most invigorating of tonics to
suitors ever since, vaunts with pardonable pride his own singleness
of heart:—

Out upon it! I have loved


Three whole days together,
And am like to love three more,
If it prove fair weather.

Time shall moult away his wings


Ere he shall discover
In the whole wide world again
Such a constant lover.

Sir John Sedley epitomizes the situation in his praises of that


jade, Phillis, whose smiles win easy pardon for her perfidy:—

She deceiving,
I believing,—
What need lovers wish for more?

And Lovelace, reversing the medal, pleads musically—and not in


vain—for the same gracious indulgence:—

Why shouldst thou sweare I am forsworn,


Since thine I vowed to be?
Lady it is already Morn,
And ’twas last night I swore to thee
That fond impossibility.
Mr. Lang is of the opinion that no Gallic verse has equalled in
audacity this confession of limitations, this “Apologia pro Vita Sua;”
and perhaps its light-heartedness is well out of general reach. But
the French lover, like the English, was made of threats and promises
alike fruitless of fulfilment, and Phillis had many a fair foreign sister,
no whit more worthy of regard. Only, amid the laughter and raillery of
a Latin people, there rings ever an undertone of regret,—not
passionate and heart-breaking, as in Drayton’s bitter cry,—
Since there’s no help, come let us kiss and part,
but vague and subtle, linking itself tenderly to some long-ignored and
half-forgotten sentiment, buried deep in the reader’s heart.
Mais où sont les neiges d’antan?
A little sob breaks the smooth sweetness of Belleau’s verse, and
Ronsard’s beautiful lines to his careless young mistress are heavy
with the burden of sighs:—

Quand vous serez bien vieille, au soir, à la chandelle,


Assise auprès du feu, devisant et filant,
Direz, chantant mes vers, en vous esmerveillant:
‘Ronsard me célébroit du temps que j’estois belle.’

The note deepens as we pass into the more conscious art of


later years, but it is always French in its grace and moderation. How
endurable is the regret with which de Musset sings of Juana, who
loved him for a whole year; how musical his farewell to Suzon,
whose briefer passion lasted eight summer days:—

Que notre amour, si tu m’oublies,


Suzon, dure encore un moment;
Comme un bouquet de fleurs pâlies;
Cache-le dans ton sein charmant!
Adieu! le bonheur reste au gîte:
Le souvenir part avec moi:
Je l’emporterai, ma petite,
Bien loin, bien vite,
Toujours à toi.

In Murger’s familiar verses, so pretty and gay and heartsick, in


the finer art of Gautier, in the cloudy lyrics of Verlaine, we catch
again and again this murmur of poignant but subdued regret, this
sigh for the light love that has so swiftly fled. The delicacy of the
sentiment is unmatched in English song. The Saxon can be
profoundly sad, and he can—or at least he could—be ringingly and
recklessly gay; but the mood which is neither sad nor gay, which is
fed by refined emotions, and tranquillized by time’s subduing touch,
has been expressed oftener and better in France. Four hundred and
fifty years ago François Villon touched this exquisite chord in his
“Ballade des Dames du Temps Jadis,” and it has vibrated gently ever
since. We hear it echoing with melancholy grace in these simple
lines of Gérard de Nerval:—

Où sont les amoureuses?


Elles sont au tombeau!
Elles sont plus heureuses,
Dans un séjour plus beau.

Nerval, like Villon, had drunk deep of the bitterness of life, but he
never permitted its dregs to pollute the clearness of his song:—
Et vent que l’on soit triste avec sobriété.
In the opinion of many critics, the lyric was not silenced, only
chilled, by the development of the classical spirit in France, and the
corresponding conversion of England. Its flute notes were heard now
and then amid the decorous couplets that delighted well-bred ears.
Waller undertook the reformation of English verse, and accomplished
it to his own and his readers’ radiant satisfaction; yet Waller’s seven-
year suit of Lady Dorothy Sidney is the perfection of that poetic love-
making which does not lead, and is not expected to lead, to anything
definite and tangible. Never were more charming tributes laid at the
feet of indifferent beauty; never was indifference received with less
concern. Sacharissa listened and smiled. The world—the august
little world of rank and distinction—listened and smiled with her,
knowing the poems were written as much for its edification as for
hers; and Waller, well pleased with the audience, nursed his passion
tenderly until it flowered into another delicate blossom of verse. The
situation was full of enjoyment while it lasted; and when the seven
years were over, Lady Dorothy married Henry, Lord Spencer, who
never wrote any poetry at all; while her lover said his last good-bye
in the most sparkling and heart-whole letter ever penned by
inconstant man. What would the author of “The Girdle,” and “Go,
Lovely Rose,” have thought of Browning’s uneasy rapture?

O lyric love, half angel and half bird,


And all a wonder and a wild desire.

He would probably have pointed out the exaggeration of the


sentiment, and the corresponding looseness of the lines. He would
certainly have agreed with the verdict of M. Sévelinges, had that
acute critic uttered it in his day. “It is well,” says M. Sévelinges, “that
passionate love is rare. Its principal effect is to detach men from all
their surroundings, to isolate them, to render them independent of
the relations which they have not formed for themselves; and a
civilized society composed of lovers would return infallibly to misery
and barbarism.”
Here is the French point of view, expressed with that lucidity
which the nation so highly esteems. Who shall gainsay its
correctness? But the Saxon, like the Teuton, is sentimental to his
heart’s core, and finds some illusions better worth cherishing than
truth. It was an Englishman, and one to whom the epithet “cynical”
has been applied oftenest, and with least accuracy, who wrote,—

When he was young as you are young,


When he was young, and lutes were strung,
And love-lamps in the casement hung.
THE SPINSTER
The most ordinarie cause of a single life is liberty, especially
in certain self-pleasing and humorous minds, which are so
sensible of every restriction, as they wil goe neere to thinke their
girdles and garters to be bonds and shakles.—Bacon.

In the Zend-Avesta, as translated by Anquetil-Duperron, there is a


discouraging sentence passed upon voluntary spinsterhood: “The
damsel who, having reached the age of eighteen, shall refuse to
marry, must remain in Hell until the earth is shattered.”
This assurance is interesting, less because of its provision for
the spinster’s future than because it takes into consideration the
possibility of her refusing to marry;—a possibility which slipped out of
men’s minds from the time of Zoroaster until our present day. A vast
deal has been written about marriage in the interval; but it all bears
the imprint of the masculine intellect, reasoning from the masculine
point of view, for the benefit of masculinity, and ignoring in the most
natural manner the woman’s side of life. The trend of argument is
mainly in one direction. While a few cynics gibe at love and conjugal
felicity, the mass of poets and philosophers unite in extolling
wedlock. Some praise its pleasures, others its duties, and others
again merely point out with Euripides that, as children cannot be
bought with gold or silver, there is no way of acquiring these coveted
possessions save by the help of women. Now and then a rare word
of sympathy is flung to the wife, as in those touching lines of
Sophocles upon the young girls sold in their “gleeful maidenhood” to
sad or shameful marriage-beds. But the important thing to be
achieved is the welfare and happiness of men. The welfare and
happiness of women are supposed—not without reason—to follow
as a necessary sequence; but this is a point which excites no very
deep concern.
Catholic Christendom throughout the Middle Ages, and long
afterwards, offered one practical solution to the problem of unmated
and unprotected womanhood,—the convent. The girl robbed of all
hope of marriage by bitter stress of war or poverty, the girl who
feared too deeply the turmoil and violence of the world, found shelter
in the convent. Within its walls she was reasonably safe, and her
vows lent dignity to her maidenhood. Bride of the Church, she did
not rank as a spinster, and her position had the advantage of being
accurately defined; she was part of a recognized social and
ecclesiastical system. No one feels this more solidly than does a nun
to-day, and no one looks with more contempt upon unmarried
women in the world. In her eyes there are but two vocations,—
wifehood and consecrated virginity. She perceives that the wife and
the religious are transmitters of the world’s traditions; while the
spinster is an anomaly, with no inherited background to give repute
and distinction to her rôle.
This point of view is the basis of much criticism, and has afforded
scope for the ridicule of the satirist, and for the outpourings of the
sentimentalist. A great many brutal jests have been flung at the old
maid, and floods of sickly sentiment have been wasted on her
behalf. She has been laughed at frankly as one rejected by men, and
she has been wept over as a wasted force, withering patiently under
the blight of this rejection. “Envy, hatred, malice, and all
uncharitableness” have been ascribed to her on one side, and a host
of low-spirited and treacly virtues, on the other. The spinster of
comedy is a familiar figure. A perfectly simple and ingenuous
example is the maiden aunt in “Pickwick,” Miss Rachel Wardle,
whom Mr. Tupman loves, and with whom Mr. Jingle elopes. She is
spiteful and foolish, envious of youth and easy to dupe. She is utterly
ridiculous, and a fair mark for laughter. She is pinched, and withered,
and hopelessly removed from all charm of womanhood; and—it may
be mentioned parenthetically—she is fifty years old. We have her
brother’s word for it.
There is nothing in this straightforward caricature that could, or
that should, wound anybody’s sensibilities. The fun is of a robust
order; the ridicule has no subtlety and no sting. But the old maid of

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