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Ch. XIV.
Why expel
Bank & Bankers
paper, rather than
suffer a rise of
prices.
that the addition made to the prices of vendable commodities
taken together is in pr the exact proportion of the supposed sudden
addition to the mass of money: viz: as 25 to 75 = as 1 to 3.
is precisely equal to in the precise proportion of
the addition to the quantity of money. There would
the rise of prices produced by
the 25 millions worth of expelled paper had they it not
been expelled have amounted to a third of
On this supposition , the riseof prices being supposed equable and therefore universal,
[+] money income would in effect be diminished by a thirdfourth: a [+] the in every income
which did not receive
a reliable increase
from the supposed
sudden influx of
25 million
the latest of these given mass of income in moneythe whole income of a man so circumstanced producing him
no more than two thirds three fourths of the quantity of vendable
commodities it produced to him before. Call with
Dr. Burke the annual income of the country
(income (including income from day labour without stock) ( that from labour included £267,000,000, or
for round numbers £90,000,000 £210,000,000
Then will the annual burthen on the country by rise
of prices, on the non-expulsion of the paper
money in question by be £70,000,000! Per contra the
utmost possible annual loss to the Bankers and Bank
proprietors by the expulsion, not so much as £1,250,000: the
probable loss, notscarce so much as the odd £250,000:
The amount of the loss would it is true End of the Chapter
be made good in money and in reali wealth
in a certain degree to every person who found Ch. XV Reduction
—
—
whose circumstances enabled him to make in
money an addition to his income equal to the
degradation thus sustained by it: [+] The misfortune [+] for although the
real value of the supptotal
mass of money - its
value in respect of
the quantity of vendable
commodities it purchases
and conveys — is not
greater after the add
supposed addition to
the mass of money, yet
on the other hand, neither
is it less
is - that although the pressure from the defalcation would
be felt in all its force - and felt by all parties
indemnified as well as und unindemnified & while
the indemnity would in comparison be scarce
perceived. The loss by rise of prices would be felt as so
much loss: the gain by the share in that extra the influx of money<add>by</add>