Page:Indian Journal of Economics Volume 2.djvu/533

 MODtR1V MzERATIISM I1g I1VDIA everywhere. That is to say,-the countries which mine more gold and silver than-they consume should have a pemanenfiy and those countries mine less than they unfavorable balance of trade; which do not possess mies, or consume, should have a permanen- fly .favorable balance oJ trade. about one-fiftieth of the world's population is about one-fifth of rich. So that if she were as India produces gold supply, her the' world's popula- rich per capita, as other countries her balance. of reasure should roughly equal the other nine-fiftieths. And approximately it does. But India is not as rich as other countrie so that she shown above requires the tion to her should not require so much. she is just a that period maximum metallic currency in wealth. Probably she also But as when she propor- reqmres But it is by no means assumed always with the "favorable" unfavorable balance against England is ticized, but India's favorable balance whole world is also criticized. The England has excess of imports made many. students think is a source of wealth, indeed aainst example that and that the gain is balance. India's Crl- the of an was another's loss. This is undoubtedly the of India. Thus is India's loss. it is supposed that It is realized that not trade continuously unless both gain the old feeling crops out in the case feeling gl ' En and's gain individuaIs thereby, of will but nations. to those of the whole world. The 1?Iercantilists wrong!y nent favorable balance to policy, because they believed supposed this perma- be the result of their that one nation's gain more in proportion for jewellery than other countries, Thus her share of the world's treasure is more than proportional to her wealth and comes to her as a permanent balance of trade, equalizing her prices-