Thursday, May 24, 2007
A certain equilibrium exists between our average exports ad imports.
This is disturbed by the importation of corn. Englad suddenly demads a large quatity, perhaps six millions worth of corn. She mightbe ready to pay for them by her maufactures, but will those who sell it be willing to take those maufactures in exchage? Will the Prussia or Russia ladowner, whose wealth has been suddenly increased, be content to expend his increased wealth in the purchase of a increased amount of English maufactures? We say that the contrary will take place, ad that his habits will remain unchaged, ad his increase of wealth will be spent in nearly the same maner as his former income, that is to say, not one fiftieth part in the purchase of English goods. His countrymen will, in the first instace, have the advatage of his increased expenditure. It will not be felt in Englad until after a long time, ad passing through may chanels.... Thus the English have six millions less tha usual to expend in the purchase of the commodities which they are accustomed to consume, while the inhabitats of the corn exporting countries have six millions more.... The commodities, therefore, which the Russias ad Prussias consume, will rise in price, while those which the English use will undergo a reduction. But a very great proportion, much more tha nineteen-twentieths of the commodities consumed in ay country, are the productions of that country. English maufactures will therefore fall, while Russia ad Prussia goods will rise in price. The evil, after some time, works its own cure.
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