Political Economy. 143 
oi the accession to the first cost, of small charges, freight, and in- 
surance, S 15. They sell so as to neat only ^14 per barrel. WheLt 
is the result of this foreign trade ? 
The merchants lose one dollar per barrel, or ^ 300,000. 
But the nation gains 
L The difference between % 8 and % 12 per bll. is on 200,00,0 
barrels—800,000 
2. The expences thereon Jg 600,000 
Less the merchant’s loss 200,000 
400,0(30 
Total neat national gain, S 1 ,200,000* 
To which, in fairness, we ought to add, all the good spring- 
ing from the influx of so much additional stimulus to industry, ^ 
Yet, according to your mode of estimating the results of mercan- 
tile operations, the nation would be, by 200,000 the poorer for 
having meddled with this foreign speculation. 
The view of the subject, which I have just given, and the 
correctness of which will hardly be questioned, accounts for the 
phenomenon, that so often communities thrive^ though merchants 
fail. The competition among these raises the prices of the native,^ 
or manufactured productions of a country, and though, in conse- 
quence of it, the more sanguine, and enterprising among them, 
will frequently ruin themselves, yet they will be seldom so egre- 
giously mistaken in their calculations, that the country should not 
benefit by their labours. We also see, why banks, and similar in* 
stitutions, which give facilities of trade to men of moderate means^, 
contribute so much to the wealth of a country. In their absence 
much less business would be done. A few capitalists would keep 
. the prices of domestic produce down, and maintain at high rates 
the prices of commodities imported from abroad. They would 
gain much in doing little ; that is^ they w^ouid cause the commu- 
nity at large to work for less, and amass colossal fortunes at the 
expence of the labouring classes. 
Such is the case in South America, in Old Spaiiu in France. 
* It is hazardous to prove too much. If I employ an outfit of 20,000 dollars, 
doubtless the tradesmen I employ will have their reasonable profit ; all this 
profit is national gain ; but if in the upshot of the transaction, I lose 1000 
dollars instead of gaining 1000 dollars, is not the part of the national capital- 
under my care diminished by that sum ? can this be called a national gain f 
T. C.- 
