Of Exports and Imports.

No nation can prosper without its prosperity being beneficial to others; but, unless its intercourse with other nations is founded on fair principles of reciprocity, the intercourse will be more beneficial to others than to itself. The effects of an intercourse, where the advantages are not reciprocal, will be disadvantageous to the nation which is most liberal. If I gain only a shilling where my neighbor gains a pound, I shall soon find myself far behind, shall lose my relative standing, and must take a lower place in the community than he does: so it is with nations; it is only a bargain on a larger scale.

Nothing can be more absurd than the notion which has very commonly prevailed, that, if the exports to any country exceed the imports from it, the balance of trade with that country is in our favorit is " pure unmixed nonsense.”

When goods are exported from England to any country, and other goods, the produce of that country, are purchased with the proceeds, for the purpose of being imported into England, the goods exported, and the goods imported, are exactly of the same value in the country to which the goods are sent, and from which the import is made; but the English merchant expects to get a profit, which he cannot do, unless the goods imported are of more value to him than those which he exported.

And, universally, unless the value of the imports exceed the value of the exports, there can be no profit.

When a man spends more than his income, his exports exceed his imports.

We will suppose the annual exports to average 50,000,000l. Now it is evident, that unless the value of the imports exceed that sum, England cannot gain any thing. We do not export 50,000,000l., knowing that we shall receive back only 49,000,000l. We expect to receive back, not only the whole 50,000,000l., but a profit besides; or, what amounts to the same thing, something that we can sell for a profit.

If our exports to the Continent of Europe are 20,000,000l., one million of-which is to be expended by absentees, it is evident that we can receive back only 19,000,000l.

I know that the advocates for absenteeism will not be dismayed at this. They will say, "What then? Is not the whole world open to you? If your imports from the Continent of Europe are less than your exports to it, you can extend your business with the East Indies, or the West Indies, with North America, or South America; so that the exports and imports may balance

each other." Indeed, they will say, this they must necessarily do; because, "nobody exports, without intending also to import." True; nobody but an absentee.

Suppose that our exports to all the rest of the world are thirty millions, and that we have received one million short from Europe, does any one gravely suppose that, if we extend our exports to the rest of the world to a hundred millions, we shall receive one farthing more than the net proceeds of the goods? It is surely incumbent on the advocates for absenteeism to show more distinctly than they have hitherto done, what equivalent England receives for the expenditure of absentees, and in what manner it is produced.

Absenteeism is injurious to the industry and wealth of a country, in proportion to the number of absentees. No merchant would either export or import to the same extent, if he could be assured that so large a number of persons would be absentees as materially to diminish the home consumption: he would not import as much for the consumption of fifteen millions, as he would for the consumption of twenty millions. As he could not prudently do so, he would regulate both his exports and imports accordingly; for, he could not export to a greater amount than he imports, unless he sells his bills for the use of absentees, and then indeed, it is not in his power to import; the demand for his imports must always govern the amount of his exports. Absenteeism therefore diminishes, first, the home trade of a country, and secondly, and consequently, its foreign trade, by diminishing the demand for foreign produce for the home consumption.

Although the total amount of exports can never exceed, for any great length of time, the total amount of the imports, yet the exports to a particular country may exceed the imports from that country for a long series of years. If our exports to the United States in one year amount to twelve millions, and our imports from thence only to ten millions, if they have not produce enough themselves, the American merchants will direct produce, or bills of exchange, to be remitted to England from another country. There is no alternative but to do this, or to allow the trade to balance itself by decrease of imports from England. But the American merchants need not adopt the latter course while they have the colonial produce of the East and West Indies, and the teas and silks of China at their command, which they carry to the North of Europe; and as these cargoes are more valuable than any kind of Baltic produce, there is always a balance remaining due to them, and which is usually remitted to their bankers in London. Thus bills are provided for the excess of imports from England over the exports to England from the United

States. It is obvious that such a trade may continue for any length of time, without any commercial disadvantage either to the United States, or to England. Whether it is worth consideration in a political point of view, is not my province to discuss here.

If every merchant in England who exports to the Continent of Europe were to import to the full extent of his exports, will the advocates for absenteeism be so obliging as to tell me, if I want a bill on France, how I can obtain one? or, if I am in France, how I can sell one on England?

Of Exports without Imports.

1. Every export, the amount of which is to be expended abroad, is an export without an import.

2. By absenteeism there is an export without an import.

3. No merchant exports without intending also to import: an absentee, however, is an exporter only; he imports nothing.

4. There is always an export without an import, when the consumer is exported also.

5. The basis of all foreign commerce is exports with a view to imports. The merchant, no doubt, sometimes pushes his adventures to such an extent that his returns, or imports, are retarded a long time; they are sure, however, to come, sooner or later: but, for the exports of the absentee, nothing ever comes at all.

6. If gold is sent to an absentee, the gold having been previously imported in return for goods previously exported, unless the absentee sends back something of equal value, there will be an export without an import.

7. Bills drawn in favor of an absentee for the amount of goods exported, diminish imports to the amount drawn for: there is an export without an import.

8. If I export goods to the Continent of Europe, or elsewhere, it will be quite impossible for me to import any thing, if I draw, or give a credit on my correspondent in favor of an absentee for the whole amount. My capital, to be sure, has been replaced by an absentee, and there remains exactly as much property in England as there was before; but I can make no importation till I have made another exportation; and if I again dispose of the value of my exports in the same way, I cannot import any thing; neither does the absentee. It is an export without an import.

9. If sundry merchants export goods to America, to the amount of one million sterling, intending to have the amount invested in cotton or other produce, but, upon the application of one thousand persons going to America, draw on or direct their cor

respondents to pay to each of those persons 1000l., it is evident that those merchants cannot import any thing; the whole million will be absorbed by absentees: it is an export without an import.

10. Carry it still further, and suppose that the whole amount of the exports of the present year were required by absentees, and that they were supplied in a similar manner, it is evident that we could have no imports of any thing.

11. Remittances to absentees cannot be made in bills of exchange, unless a previous export has been made, without which no such bills can exist. But how an export can be "made ultimately in goods," when goods have been previously exported to provide the bills, I have still to learn.

12. It is said, "it will not be contended that the mode in which the remittance is made signifies, whether in gold, or any other article, for all exports from a country that does not produce gold, must be made ultimately in goods." I am quite as indifferent as the writer about how the remittances are made; all I desire is, to have something come to England for them: but, unluckily, the exports are not "made ultimately;" they are made previously. If the export is to France, it must be made before a bil can be drawn in favor of an absentee. If the export is made in gold, there was a previous export to obtain the gold; and if it is then carried to France, and expended there, there will be another export, but no import. I want to know, what England receives for the gold thus sent to France. The importer has already paid for it, and has exchanged it with an absentee for English gold; then the absentee takes it to France, and I cannot, and I have tried hard, find what comes to England for it. The "ultimate export" also, I cannot find, and am very glad of it, for I have already found one too much; having sent away the gold, and got nothing for it.

13. If I send a cargo of goods to Peru, and get back nothing but gold, I get back an article of which I can make no use whatever, and must sell it, or send it away to procure something more useful. But although it is of little intrinsic value, except what it derives from its convenience as a representative of property, as this value lies in a small compass, I find it a convenient commodity to send to another country, where I can procure with it the raw materials of the same articles which I had exported to Peru; or purchase them at home of another merchant who has previously imported them. I can then prepare another cargo, and procure another quantity of gold, which I am very glad to get rid of in the same way; and I should be glad to send it to France, and even to inundate France with gold, provided France can send to me something that I want; something that will give employment

to British capital and industry: but I cannot agree to send, in any shape, the revenue derived from British capital and industry, to France, to be expended there, and have nothing come to England for it.

14. It is said, that the expenditure of absentees abroad enables the foreign merchants to import more goods from England, and that if the absentee takes with him gold, gold or some kind of merchandise will be sent to England to purchase more goods. Well, be it so; you will then have three exports, and only two imports; namely,

1. Goods to Peru, value 1000l. 2. Gold from Peru, value 1000%. 3. Gold to France, 1000l. 4. French merchandise - 10002. 5. Goods to France, · 1000l.

Take it how you please, and go on as long as you please, and you will find that there must of necessity be an export more than an import. Nothing can alter this position, but the absentee bringing back when he returns to England as much as he expended abroad; and, even in that case, there is still a loss to his country of the profits of the retail trade, on the whole amount of his expenditure during his absence.

Effects of Absenteeism on the rate of Exchange, and the price

of Specie.

1. The par of exchange simply means, parity, equality, or the comparative value of the coins of one country with the coins of another country.

2. It is always considered that the course of exchange is in favor of that country which remits for the pound sterling below par, and against that country which remits for the pound sterling above par.

3. If the exports from England to any country, and the imports from that country into England, exactly balance each other, there will be as many buyers as sellers, and as many sellers as buyers, of bills, and the exchange with that country will be at par.

4. If the imports into any country from England exceed in value the exports of that country to England, bills on England will be at a premium, that is, above par, in that country; because there will be fewer bills for sale than are wanted to remit to England.

5. If the exports from any country to England exceed in value the imports into that country from England, bills on England will