The Virginian. [volume] (Lynchburg [Va.]) 1822-1829, 1823-02-21
PaLITICAL ECONOMY.

81 Aitg ohhii tlilfF NAfdl siB'i ''N W.
not ree0lect ever IL have seen the impor-
tant questions which il touches more falni-
liarly or more profoundly discussed. Ad-
am Smith never uttered mere truths in the
same compass. The writer has the same
talent which distinguished him of illus
trating the operations of an empire by
those of a single individual
From the Portsmouth IN. H. Journal.
In the science Of Political Economy,
there are no errors 50 iuyeterate as those
relating 10 foreign commerce. Ii is but a
few years since it was the fashion to re-
gard the boot. Of the custom house as the
only standard by which the prosperity OF
the nation could be measuI, j. II the inn
ports exceeded the exports, il was ii that
the balance of trade was against us thai
we were running in debt to foreign nations
and that poverty and ruin were oyertaking
Us. As the balance of trade, in this SENSE
has always been against the United States,
II would seem to be difficult to reconcile
our acknowledged prosperity with the cor
rectnes Of the principle. But though bet
ter opinions begin to prevail, they are not
universally received. We still hear pre-
dictions of ruin, because our imports are
greater than our exports. 1t may be
worth while toexainlue the reasons for this
apprehension.
In the case ofan individual, nothing can
be palmer than that his imports should ex-
coed his exports. How can a man become
rich, but by receiving more than he parts
with ii is the same with nation. If
the United States, by exporting 60 millions
annually, can import Cd millions, it is APP
parent that nearly the whole difference has
been profit.
The error has arisen from estimating the
value, both Of imports aud exports, at our
own custom house, instead of estimating
their value in the foreign country where
the exchange is actually made. An inqui-
rer learns at the custom house that ca mil
hons have been received, aud that only
60 millions have been sent to pay for it :;
and be naturally asks how the difference is
to be supplied. If he is not acquaAtcd
with the course of trade, he naturally sup
puses that a debt OF ! millions ha9 l.
curred al =trludcrS AT the Thought OF
having all the gold and silver drawn from
the United States to pay it.
let slight attention TO the course of
domestic trade would shew him that his
apprehcnsions were groundless. In some
nj our distant settlements corn Is 50 cents
Il bushcI, and salt is 100. If farmer from
one of these settlements were to come TO
market with 80 bushels of corn, he might
sell II for sufficient 10 purchase 81 bushels
OF salt. II the value of these articles is TO
be estimated at his own door, he has cX-
nnrtII GIipan t1.lI1ra and l,Anbtttu EGlT
But, uules the expenses ofhis Journey have
exceeded twenty two dollars, he has made
profit by the exchange. Now Ahe Gus
tom house returns give ust as correct a
view of the trade of the nation, as an ac-
count Kept at Farmers door, of his out
gom@s and in-comings, would give of the
state of his business. These returns are
valuable and neccssary-but for very DIFF
ferent purpose.
The great faIlacy of arguments drawn
from II" custom house returns, will be APP
parent from considering one branch of the
trade OF this town, namely, the lrcighting
business. In the course of the last year,
we have had y ships and IL brigs employ
I'd in this trade several Of which have
made two voyages. 1t will, therefore, be
i''h 10y N'llilii lIt tlulll, u IfhiAt a Lul-
cuatiOn upon 40 VOYAGES in the veal
These vessels generally took with them
hay and lumber sufficient To pay their port
charges i'll the Southern States, say $1,000
each, or $4,000 for the year. They re-
ceiee upon an average E1O00 sterling each,
in Europe ; or Sl77,G00. Deducting from
this sum their port charges in Europe,
they brought home in Salt and iron, or left
behind to be brought home by Others,
100000. The whole Of this sum appears
on the books of the custom house Is an
ports without one cent of exports to ba-
lance If. But as, from this sum, the mer
chant keeps hs ship in repair, pays his
scancn, and purchases his outfits of the
voyage, il consists of interest and reim-
bursmcnt of capital, wages of labor, and
proht III the same manner as the price
which the manufactures receives for a
piece of broad cloth, consist of interest and
reimbursement Of capital, of labor and pro-
fit
A merchant Sending his ship to sea,
must charge against his voyage not only
the first cost Of his charge, bat all the out
fits, provisions, and wages advanced to the
scamcn his own or agents services, and
the premium ofinsurancc On the return
al the vessel, he must again charge the
adventure with the seamenS' wages, and
all the expenses attending the landlng and
sale of the goods. In order To know, then,
whether the balance oftradc is for or against
the country, the imports of the merchant
must be placed aginst all these charges,
and if it exceed the aggregate amount, we
may conclude that his business can be con-
tlnued with profit to himself and benefit to
the country. The exports of this part of
The country are bulky and of small value
IN many cases not constituting one half the
consideration that produces the imports
yet this IS all that appears on the books of
the custom house.