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increase would exist in its original magnitude. Hence, if there is to be a state of rest, it must be at some point short of reduction to the original state of things.

As by these changes the quantity of Irish commodities demanded on the whole is not finally altered, so neither is the quantity of French. For the individuals in France who are from time to time induced to expend their money upon the new quantity of Irish commodities poured into that country, evidently cannot expend the same money upon French commodities also. They must therefore expend so much less; which balances the greater quantity of French produce demanded for the purpose of being sent to Ireland.

In determining the kind of commodities wliich shall be exported from Ireland for the purpose of procuring the French produce required, the exporters will fix upon those kinds which will best keep up their prices in France when carried there in augmented quantities. And this they will do equally, whether these commodities are strictly of Irish origin, or have been brought into Ireland from other countries and paid for in commodities of Irish origin. If they are of the latter description, then since the demand for these commodities in Ireland must be increased by the removal of the quantities exported, a stream of these commodities will flow into Ireland on one side, while it flows out of it on the other; the markets which supply Ireland in the rear being supposed open. But since the stream which flows in, must be paid for by commodities of Irish origin, the quantity of Irish production will be finally the same as if the commodities sent to France in pursuit of French produce had been strictly of Irish origin. And this set or current of commodities through Ireland into France will con

ue, till it is put a stop to by a diminution of prices in France, or an increase of prices in the markets which supply Ireland in the rear. Gold and silver are of all commodities the most likely to be among the commodities chosen for the purpose above described. For since they are of all commodities the most easy of transport in proportion to their value, the fall in the prices of gold and silver caused in France by an influx of those metals from Ireland, must be much smaller than the fall in the price of, for instance, Irish butter, which would have been the consequence of the increase of exportation from Ireland, had it been made in that commodity. The butter could only be consumed at the ports of landing, or within a small circle in their neighbourhood; for the expense of carrying it would alone be sufficient to prevent it from penetrating further. But the gold and silver, by reason of the comparative nullity of their carriage, may be said to have open to them not only the market of France, but the market of the whole continent which is at her back. Hence if the markets of, for instance, South America were open to Ireland in the rear, a stream of gold and silver would begin to set through Ireland into France in consequence of the augmented appetite for claret in Ireland; and an impetus would be given to the carrying of Irish linens or other commodities to South America to pay for it, which is exactly the same thing in the end as if the claret had been bought with Irish produce directly. This current of gold and silver would continue till it was put an end to by some alteration in the prices of gold and silver in France or in South America. And its effect would mauifestly be to APRIL, 1826.

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keep down the prices of French commodities to the consumers ;-in which it is curious to observe, how the existence of such commodities as gold and silver smooths the way for the easy interchange and enjoyment of the products of different parts of the globe, and how little we are beholden to that portion of the ignorance of our ancestors which would teach us to restrict their circulation. But if it should happen that at the time when this increased appetite for claret takes place in Ireland, there should be no markets open to Ireland for procuring gold and silver from the rear, then gold and silver would leave Ireland till their prices were raised in Ireland sufficiently to make it cease to be profitable, and no longer; in the same manner as would happen to any other commodities. In other words, the Irish would send their gold and silver abroad just as long as they found it to be for their advantage to do so, and no longer; which is enough for any reasonable person to be content with.

If instead of the case being as has been stated, an increase of desire had taken place in France for Irish commodities, without being accompanied by any corresponding increase of inclination to consume French commodities in Ireland, all that has been described as taking place in Ireland would take place in France, and vice versâ. There would be no effect upon the final quantity of production in either country; but the lovers of Irish commodities in France would have the money prices raised upon them, while in Ireland the money prices of French commodities would fall.

The rise of money prices, then, in one country, is a payment which men voluntarily submit to, in consequence of their desire to consume commodities the produce of another country, at a time when there is no co responding inclination in that other country to consume their produce in return; and it goes, as before observed, to pay the expense of tempting the inhabitants of the other country to consume. But the existence of this rise of money prices at all, is dependent on the fact of there being no such corresponding increase of inclination in the other country; for without this, there is no necessity for any fall of money prices in one country, or any rise in the other. Hence if an increase of inclination for consuming the other's commodities should take place in both countries alike, the effects described as arising to the consumers of foreign commodities would be mutually counteracted and removed,

If a number of residents in Ireland should at any time leave off the consumption of French commodities, and betake themselves to the consumption of Irish, a smaller quantity of Irish commodities will thenceforward go over to France in pursuit of French commodities for consumption in Ireland. And the consequence will be, a certain degree of rise in the money prices of Irish commodities in France, and a fall in the money prices of French commodities in Ireland, unless this should be prevented by the occurrence of a corresponding diminution of inclination to consume Irish commodities in France. But, as before, no effect will be produced on the quantity of production demanded on the whole in either of the two nations.

If a number of residents in Ireland should resolve to go over to France, and expend their revenues in that country, their agents in Ireland will, from time to time, deliver the amount of their revenues in Irish currency to merchants in Ireland, receiving from these merchants bills of exchange, whereby their correspondents in France are requested to advance to the absentees the quantity of French currency, which the merchants apprehend will be realized in France by the sale of the commodities purchaseable in Ireland with such a portion of Irish currency as remains after deducting the necessary quantity for the expenses and profits of the merchants. And then these merchants will go into the Irish market, and lay out the lastmentioned sum in commodities of some kind or other, which either are of Irish origin, or must, in some stage, have been procured by giving commodities of Irish origin; and these they will send over to France to be sold in the markets for French currency, which French currency is made over to the acceptors of the bills when the bills become due, and replaces the French currency which those acceptors have advanced to the absentees. And as that portion of the Irish currency, which is retained to answer the expenses and necessary profits of the merchants, will assuredly be expended on something or other as well as the rest, it will be the same thing in the end and in the aggregate, as if the commodities purchaseable in Ireland with the money of the absentees, were transmitted to them in baskets at Paris, and sold by them for French currency in the French markets; the only difference being that, in the actual case, they receive the French currency by anticipation from the acceptors of the bills, and when the commodities arrive in France, they are sold in the markets for the benefit of the acceptors. The commodities thus purchased in Ireland will never be eaten or worn by the absentee, either in Paris or any where else; but they will be sold on his account. And they will neither be the same, nor of the same kind, that the absentee would have purchased had he remained at home; but they will be of equal amount, which is the same thing to Ireland in the aggregate. The absentee in Paris whose country-seat is in Connaught, will not cause a coat to be bought from the village tailor, nor a coach from the village carpenter, as might by possibility be the case if he was confined to his residence at home; but he will cause a quantity of Irish butter to be sent from Cork to France, or of Irish linen to South America to buy gold to be sent instead, by which the producers of butter or of linen, in some part or other of Ireland, will be benefited to the same amount. If the tailor and the carpenter have ground to complain that they are injured by his absence, the producers of butter or of linen would have exactly the same ground for complaining that they were injured by his return. So that, unless it is to be undertaken to regulate by law, how much of a man's income he shall be at liberty to expend upon butter and linen, and how much with tailors and carpenters, there is no way but to leave this to be settled by his own interests and inclinations, as heretofore. Mr. M‘Culloch never asserted that the village tailor and carpenter would be benefited; but he asserted that the village butter or linen manufacturers would, in some place or other, be benefited, and that this was the same thing to Ireland. It is scarcely necessary to remark, that for the commodities thus remitted on account of the absentees, there is no return of French commodities for consumption in Ireland. For the return is to the absentees in France ; who, on whatever they may expend the French currency which they receive, do certainly not expend it on commodities for consumption in Ireland.

If the absentees expend the French currency which they receive upon French produce, the consequences of all kinds must be the same as if they had staid at home and consumed French commodities in Ireland—with only this difference, that the amount of what would, in the latter case, have been made to pay the expenses and profits of the importers, and would by them have been necessarily expended on some commodities or other, will, in the other case, be added to what will be expended on commodities to be sent to France on account of the absentees. For in both cases, with no other difference than that which has been stated, a quantity of Irish commodities equal to what can be purchased in Ireland with the revenue of the Irishman is sent to be consumed by the natives of France; and a quantity of French commodities, cqual to what can be purchased in France with the French currency for which these Irish commodities are sold, is delivered to and consumed by the Irishman. Hence there will be no alteration in the quantity of produce of either France or Ireland on the whole, through the consumption of French commodities by the absentces. But if the absentees who now consume French produce in France, had been previously consumers of Irish produce in Ireland, the change will cause a certain degree of fall in the money prices of Irish commodities in France, and of rise in the money prices of French commodities in Ireland, in the same manner as if a like change of consumption from Irish commodities to French had taken place among residents in Ireland.

If the absentees, after their arrival in France, should expend the French currency which they receive upon Irish produce, the consequences of all kinds must be the same as if they had staid at home and consumed Irish commodities in Ireland, with only this difference, that the amount of what will be made to pay the expenses and profits of the merchants concerned, and will be expended by them, would, in the other case, have been added to what was expended by the Irish residents for their own use. For, in both cases, there is no addition . to the Irish commodities which are to be consumed by the natives of

France; and, with no other difference than has been stated, a quantity of Irish commodities, equal to what can be purchased in Ireland with his own revenue, is consumed by the Irishman. Hence there will be no alteration in the quantity of produce of either France or Ireland on the whole, through the consumption of Irish commodities by the absentees. But if any of the absentees who now consumc Irish produce in France, had been previously consumers of French produce in Ireland, the change will cause a certain degree of rise in the money prices of Irish commodities in France, and of fall in the money prices of French commodities in Ireland, in the same manner as if a like change of consumption from French commodities to Irish had taken place among residents in Ireland.

The absentees will ultimately consume French commodities in France no cheaper than they would have consumed them in Ireland ; except by the amount of the expenses and necessary profits attendant on their carriage to Ireland, and any taxes wliich may be escaped. For the quantity of French currency expressed in the bills transmitted to them in return for any given amount of Irish currency delivered on their account to the merchants in Ireland, is at all times determined by the quantity which can be procured in France by the sale of the commodities purchaseable in Ireland with the amount of Irish currency delivered.

The quantity will therefore be diminished whepever the prices of Irish commodities fall in France, and the contrary; and the absentees will in reality feel the effects of the increase of demand for French produce, their own demand included, in the same manner as if they had demanded the French produce for consumption at their houses in Ireland.

This variation in the quantity of French-currency made over in return for a given quantity of Irish, is in reality what is known by the name of the variation of the rate of exchange; and it is manifest that it can never proceed to a greater extent, than the variation in the money prices of those kinds of commodities which can be exported in increased quantities with the least diminution of price, or in other words, than the variation in the money prices of gold and silver. It has been usual however, to refer the variation of the rate of exchange to another cause, namely, the comparative abundance or scarcity of bills drawn in one country upon the other. But since every bill on a foreign country must be paid-if it is paid at all—by the transmission of commodities of some kind, under which head gold and silver are included,,it follows that the amount of the foreign currency which will be expressed in the bill in return for a given amount of home currency, will depend entirely on the amount of foreign currency which will be procured in the foreign country by the sale of the commodities purchascable here with the home currency received, and not on the number of bills which may be in existence either here or any where else. If indeed a great number of persons are wanting bills to be drawn on the foreign country at the same time, it is a proof that great quantities of commodities are going to be sent to that foreign country to answer them, and consequently the prices of these commodities must fall abroad, and the quantity of foreign currency which will be expressed in the bills given in return for any given amount of home currency must fall also. But it falls because a great many commodities are to be sent, and their prices thereby lowered; and not because there are a great many bills, which is only the concomitant of the other. Hence, when in any country the rate of exchange with other countries falls, it may be caused by any of three things. It may be because the inclination of the inhabitants of that country for the produce of foreigners is increasing faster than the inclination of foreigners for theirs; or it may be because the inclination of foreigners for the commodities of that country is decreasing; or, thirdly, it may be because the value of the currency has from some cause or other been diminished, in consequence of which, the gold coins, if things were in a state of equilibrium before, must now be sent abroad as the means of obtaining more for them than can be got at home, even though the consequence is a partial diminution of what they will fetch abroad in consequence of their increased quantity. If sixpence can be got by sending a coin abroad, it will be sent, even though the quantity of coins sent should be such as finally to reduce the price abroad by a penny, or reduce the gain to fivepence ;

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