The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-12-28
wuATCoNsrIruTEs PUBLIC WEALTH.
To the Editor Of the Democrat:

To the Editor Of the Democrat:
Your able commercial and financial editor
uaes this remarkable sentence: "As long as
we produce gold and silver nj the rate OF
&lOnoo00 900 d year. and have balance OF
trade In our favor of more than Sac, 000, 900 n
month. we are on the road to prosperity"
Suppose that gold is produced more dearly
In America than IN some other countries: that
Ii, suppose Ii takes more labor TO produce q
pound of pure gold IN America than 1t does
To produce II In Australia and transport 1t to
this country, and by the same labor which y
requires to produce pound OF gold, applied
TO other Industries. enough valuable com
, modities could be produced to buy pound
and half of gold in Australia. is " not owl
dent that we would not be gaining IN wealth
by the production of gold near as fast as we
would by the production 81 other things, az
wheat corn, cotton or articles Of manufac-
ture, to the production OF which this country
IA better adapted. and which can be produced
more cheaply-that is, with less labor-than
In any other country
Now, II gold can 10 produced with less Ia
Dor in America than In any other country,
then we are acting wisely In devoting our
labor to the production of gold; but III the
same labor which 1t requires to produce one
gold dollar, II applied TO producing a pair OF
shoes, or an AK or knife, would buy one and
a quarter gold dollars from some other coun-
try, then we are not on the road to prosperity
by producing Slo0,000oO0 2 year In gold;
1t may be true that gold is produced with
do not write for the purpose OF INDUCING In
a verbal criticism, but to call attention
TO the fallacy OF the theory underlying all
protective tariff laws or other Legislative
interference in the freedom OF trade. IL L.
pretended by the advocates OF such laws that
domestic industry is encouraged and we are
made richer by the simple expedient OF com
polling the people of the United States 70 pay
Tor the protected commodities more than they
could buy them for with the products OF their
unprotected labor If there was no protection.
The only effect Of such laws IL To enrich u
very few, and to make the millions OF CON
sumers poorer. The diminished wealth OF the
millions Is much greater sum than the IN
creased wealth of the few.
What does Your commercial edftor mean
snv "the balance of trade being in our favor
$50, 900, 900 per month whereby we are grow
ing richer. Does he mean that the invoice
value OF our exports exceeds the invoice value
of our imports by this sum If so, the con-
clusion il almost inevitable that we are
growing poorer and that our bonds are com
ing back from Europe to make up the def
cheney. The wealth ot nation y ma mace UP
yfdualA. An Illustration drawn from single
Transaction will clearly show the fallaoy OF the
Usual ideas about the balance OF trade In our
favor being an evidence OF increasing wealth
Suppose / ship $4,000 worth OF cotton TO
uayre and then sell it for 100000, and with
Tie 100000 buy foreign goods and manuiac-
lures of the value of 500, 900, and import them
into this country, where these goods contrir
F,ute $4,000 to the government by way OF
ssaties, and sell them for 100000. 1t Is clear
that, according to the custom-house entries
the balance of trade is against this country
on this transaction $4,000; yet nave really
Gained $4,000 profit and the government
mas gained $4,000 in revenue, and the real
gain to the wealth of this country is the oil
ference between the value here OF the cotton
4 exported and the value here OF the goods
Imported, say $4,000.
Yet according to the ordinary theory OF