|Date:||August 29, 2012|
|Length:||2 / 516|
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For example, the same problem - a net silver outflow instigated by an unequal balance of trade - had occurred in Britain twenty years previously. At this time Britain was consuming over 15 million pounds of Chinese tea per year. Britain had few manufactured goods which China wanted, so the bulk of payments for the tea were of necessity in silver...
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Britain had few manufactured goods which China wanted, so the bulk of payments for the tea were of necessity in silver. This outflow of bullion jeopardized the stability of the British economy, just as the loss of bullion due to the opium trade would threaten China in the early 1800's. By this example we see that an alternative product to opium, namely tea, could cause the same harmful economic processes - trade deficit and loss of silver supply - to occur...
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