In and for years thereafter the great depression in the United States cut down our orders of foreign goods as well. The resulting scarcity of dollars deepened world wide depression and led to many of the governmental obstructions to trade which Americans deplored. Except in the case of Hitler Germany, these obstructions were largely measures of self defense by foreign nations against the consequences of dollar scarcity. Not having enough dollars, they had to look for other means of buying what they needed; hence barter arrangements, clearing agreements, and the like were made.
Quotas, exchange control, and the other limitations of foreign trade were measures to make sure of getting the most necessary imports.
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