Indian Journal of Economics July 1947

The most significant among the favourable circumstances for the evolution of the multilateral trading system was the long-term capital investments in the nineteenth century which was an age of maturing capitalism. [...] The Hawley-Smoot Tariff of the United States of America which was passed into law in 193o was the highest in the history of that country and it was the initial factor in the disintegration of trade relationships. [...] The trade agreements between India and the United Kingdom were only a part in the scheme of inter-imperial trade evolved for the formation of economic groups of countries. [...] An idea of the magnitude of the last item of imports may be gleaned from the fact that for some time past we have been importing food-grains of the value of Rs. [...] During the war period there has been a considerable amount of a favourable balance of trade but towards the end of the war there was a dwindling balance until in 1945 the balance was negative to the extent of 19.41 lakhs.