6
----------------------------------------------------------------
| Payments to| Assets | Assets for each
| policyholders| | 100 insurance
| | | in force
| | |
Legal reserve | $470,000,000 |$4,659,000,000 | $22.66
Assessment .... | 106,000,000 | 195,000,000 | 1.37
Total ....... | 576,000,000 | 4,854,000,000 | 15.87
]

[Footnote 8: In 1913 the total premiums collected by all kinds of
insurance companies reported (Statistical Abstract of the U.S., 1914,
pp. 549-557) were about $1,512,000,000, and the amount returned to
policy holders the same year was $918,000,000, or about 61 per cent
of all premiums, the amount not returned ($584,000,000) being 39 per
cent.

Premiums received Returned to policyholders
Amount Percent

Life insurance
reserve companies ..$715,000,000 $470,000,000 67
assessment companies 138,000,000 106,000,000 76
Other kinds ......... 659,000,000 342,000,000 52
------------- ----------- --
Total ........... $1,512,000,000 $918,000,000 61
]

[Footnote 9: See above, secs. 2 and 5.]

PART IV

TARIFF AND TAXATION

CHAPTER 13

INTERNATIONAL TRADE

Sec. 1. Political and trade boundaries. Sec. 2. Benefits of international
trade. Sec. 3. Choice of the more advantageous occupations. Sec. 4. Persistence
of differences between nations. Sec. 5. Doctrine of comparative
advantages. Sec. 6. Equation of international exchange. Sec.7. Balance of
merchandise movements. Sec. 8. Cancellation of foreign indebtedness. Sec. 9.
Par of exchange. Sec. 10. International monetary balance and price-levels.

Sec. 1. #Political and trade boundaries.# By international trade is
meant, in general, trade between persons resident in different
countries; comparatively rare is the case in which one of the two
parties to a trade is a whole nation acting through its government
as a unit (e.g., in the purchase of munitions of war in neutral
countries). Outside of a communistic group such as the family, trade
is a necessary accompaniment of division of labor. As territorial
division of labor began between neighboring tribes,[1] international
trade was the e