FREE-TRADE v. FAIR-TRADE.
[TO THE EDITOR OF THE "SPECTATOR"]
Sin,—In view of the misleading statements circulated at the present time by the Protectionists, the following simple illustration as to the balance of trade being supposed to be against us because our imports exceed our exports is interest- ing. Suppose a merchant were to send to America 21,000
worth of goods, and after selling them at a profit, ship home. ward a cargo of the value of £1,500. If this arrives safely, his imports exceed his exports, and (according to the Protec. tionist theory) he is rapidly becoming bankrupt; but if they all sink to the bottom of the sea and are lost, then he is a flourishing trader. Exports are the price of imports, and (as gold is now reckoned in the category of both as an article of commerce) it is quite clear that if we buy more than we sell it must be because we are selling at a profit. —I am, Sir, &c.,
0. H. 0.
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