Page:Inquiry into the Principles and Policy of the Government of the United States.djvu/351

Rh Out of the same fund, that is, the difference in a specie value, between the price of exported labour here and abroad, the whole amount of mercantile profit is to be taken; because competition cannot be so excited by banking, as to destroy this prolit, without destroying commerce; nor is it conceivable that mercantile calculation could be so deceived, as ardently to patronise a system productive of such a consequence. If this mercantile profit amounts also to twelve and an half per centum on exported labour, it raises the deduction under a bank currency, upon forty millions of this subject, to twenty-five per centum, or ten millions annually. From this expense, there is no deduction pretended, except the enhancement of value by exciting mercantile competition. To reimburse it, banking, through this boasted competition, must save to the nation five millions annually, out of a mercantile profit of five. At whatever rate mercantile profit is compute«l, the advantage of mercantile competition must come out of this fund. Would an able calculator give six per centum for bank paper, if it was true that it deprived him of one, two, three, four or five millions annually, and bestowed it on labour?

The difference between the home and foreign price, as the ground for banking to operate on, is yet farther narrowed by the deductions of freight, commission and insurance. These cannot be destroyed by any competition it may excite; on the contrary, if banking did increase the price of labour consumed at home, it would increase this deduction, and narrow still more the ground for its operation on exported labour.

In fact, banking, instead of exciting competition, must, like duties, fall on the commodity, and fail to lessen mercantile profit. The merchant advances the price paid for its currency, as he advances duties. He must nut only be reimbursed the one, in the price of the commodities he buys, as he is reimbursed the other, in the price of the commodities he sells, but be must also gain a profit on both his advancements, otherwise he would be as inimical as he is