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

60 PAPER MONEY VINDICATED.In a pamphlet, which is intended to conveynothing more than a sketch of some importanttruths, hitherto unexplained, concerning papermoney, I am not permitted to make those deductionsfrom the preceding tables, whichwould become a treatise on political economy :all that comes within my province on this occasionis to make a few passing remarks, whichshall be as brief as possible.1. From 1688 to 1765, that is, for thewhole of the first period in No. I, it was thepolicy of our government to offer a bounty of5s. per quarter on the export of corn. Variousopinions have been entertained respecting thepropriety of this measure. Dr. A. Smith thinksit " altogether impossible that the bounty couldever contribute to lower the price of grain."*He supposes, on the contrary, that it " necessarilytends to raise the money price of cornsomewhat higher than it otherwise would be inthe home market. "fis to the same effect,The opinion of Mr. Ricardobut qualified by this consideration,that as corn, to be more largely produced,which is the natural effect of a bountyon exportation, would require the cultivation ofinferior lands, so the rise in price necessaryto repay the producer, under this forced system,would still be the natural price of thecountry ; and as this was higher than before,* Smith'sWealth, vol. ii. p. 364. f p. 365.