Currency fallacies refuted, and paper money ... - University Library

PAPER MONEY VINDICATED. 39instance, taxed sometimes as high again as itsnatural value, the general difference in exchangebetween paper and metallic money cannot compensatethe English vender in freewith the foreigner.competitionIn all these cases, therefore,a duty must be laid on the importation of thesearticles from other countries, sufficient to bringthe Englishman on a fair level with his foreignantagonist.In articles of export, the difference betweenpaper and metallic money will yield our producersevery needful protection. If they selltheir goods abroad but for the natural price, andnone of their rivals can afford to take less, thatprice,being the quantity of gold and silver representingthe untaxed article, will, on the average,exchange in England for so much papermoney as will represent not only the natural price,but the taxation to which our producers aresubjected. If here, however, excessive dutieshave been charged on any commodities, the producermust be allowed a drawback on carryingthem abroad.Under this system then of a paper currency,which is capable of adding to prices so muchas taxation requires beyond the natural expressionof their value in gold and silver, the producerwill have nothing to complain of,lay yourtaxes as you will, provided only that in allcases of excess, he is guarded from unfair competitionby a protecting duty or a drawback.