On The Principles of Political Economy, and Taxation Part 21

"Government should not coin the bullion of individuals except on payment, not only of the expenses, but also of the profits of coining. This profit might be carried to a considerable height, in consequence of the exclusive privilege of coining; but it must vary according to the circ.u.mstances of the mint, and the quant.i.ty required for circulation." Vol. i. p. 380.

Such a regulation would be extremely pernicious, and would expose us to considerable and unnecessary variation in the bullion value of the currency.

[49] If with the quant.i.ty of gold and silver which actually exists, these metals only served for the manufacture of utensils and ornaments, they would be abundant, and would be much cheaper than they are at present; in other words, in exchanging them for any other species of goods, we should be obliged to give proportionally a greater quant.i.ty of them. But as a large quant.i.ty of these metals is used for money, and as this portion is used for no other purpose, there remains less to be employed in furniture and jewellery; now this scarcity adds to their value.--_Say_, vol. i. p. 316. See also note to p. 78.

[50] An Inquiry into the Nature and Origin of Public Wealth, page 13.

[51] An Inquiry into the Nature and Progress of Rent, p.

15.

[52] See page 124, where I have endeavoured to shew, that whatever facility or difficulty there may be in the production of corn; wages and profits together will be of the same value. When wages rise, it is always at the expense of profits, and when they fall, profits always rise.

[53] Of what increased quant.i.ty does Mr. Malthus speak?

Who is to produce it? Who can have any motive to produce it, before any demand exists for an additional quant.i.ty?

[54] Inquiry, &c. "In all progressive countries, the average price of corn is never higher than what is necessary to continue the average increase of produce."

Observations, p. 21.

"In the employment of fresh capital upon the land, to provide for the wants of an increasing population, whether this fresh capital is employed in bringing more land under the plough, or improving land already in cultivation, the main question always depends upon the expected returns of this capital; and no part of the gross profits can be diminished, without diminis.h.i.+ng the motive to this mode of employing it. Every diminution of price, not fully and immediately balanced by a proportioned fall in all the necessary expenses of a farm, every tax on the land, every tax on farming stock, every tax on the necessaries of farmers, will tell in the computation; and if, after all these outgoings are allowed for, the price of the produce will not leave a fair remuneration for the capital employed, according to the general rate of profits, and a rent at least equal to the rent of the land in its former state, no sufficient motive can exist to undertake the projected improvement." Observations, p. 22.

[55] See p. 124.

[56] See p. 70, &c.

[57] It is not necessary to state on every occasion, but it must be always understood, that the same effect will be produced by employing different, but equal portions of capital on the land already in cultivation, with different results. Rent is the difference of produce obtained with equal capitals, and with equal labour on the same, or on different qualities of land.

[58] Observations on the Corn Laws, p. 4.

[59] Upon shewing this pa.s.sage to Mr. Malthus, at the time when these papers were going to the press, he observed, "that in these two instances he had inadvertently used the term _real price_, instead of _cost of production_." It will be seen from what I have already said, that to me it appears, that in these two instances he has used the term _real price_ in its true and just acceptation, and that in the former case only it is incorrectly applied.

[60] Page 40.

[61] Manufactures, indeed, could not fall in any such proportion, because, under the circ.u.mstances supposed, there would be a new distribution of the precious metals among the different countries. Our cheap commodities would be exported in exchange for corn and gold, till the acc.u.mulation of gold should lower its value, and raise the money price of commodities.

[62] The Grounds of an Opinion, &c. page 36.

[63] Mr. Malthus, in another part of the same work, supposes commodities to vary 25 or 20 per cent. when corn varies 33-1/3.

[64] In Chap. 24. I have observed, that the real resources of a country, and its ability to pay taxes, depend on its net, and not on its gross income.

[65] This is on the supposition that money continued at the same value. In the last note, I have endeavoured to shew that money would not continue of the same value,--that it would fall, from increased importation; a fact which is much more favourable to my argument.

[66] Mr. M'Culloch, in an able publication, has very strongly contended for the justice of making the dividends on the national debt conform to the reduced value of corn.

He is in favour of a free trade in corn, but he thinks it should be accompanied by a reduction of interest to the national creditor.

THE END.