London. You will not deny, I suppose, that he would give just as much employment to Irish labor as if he had consumed all these articles in the true orthodox way, close to the doors of the very people who produced them.

"It would puzzle you, I think, to discover any error in this proposition, or to show any difference which it can make to the Irish producers, provided they supply the commodities, whether they are consumed on the spot, or at a thousand miles distance. I would advise you to ponder well, however, before you admit this; since you will find, if you do admit it, that you have conceded the whole question.

"In fact, this case, which I have put as an imaginary one, exactly corresponds in every thing that is material to the purpose with the actual state of the facts. The Irish do not, indeed, always send the identical bread, beef, chairs, tables, &c., which the landlord would have consumed on the spot, to be consumed by him in the foreign country; but they either send those very articles, or what comes to the same thing, they send other articles of exactly the same value.

"It appears, therefore, conclusively, that the only difference between the expenditure of the resident landlord, and that of the absentee, is this: the one buys, let us say, one thousand pounds worth of Irish goods, every year on the spot; the other has a thousand pounds worth of Irish goods every year sent to him. Perhaps you may be able to discover some some great difference which this makes to the capitalists and laborers in Ireland. Perhaps you may-but if you can, you can do more than I can." I

Our ancestors, a grave whisker'd race," but ignorant of the grand doctrines of the Ricardo school, took it into their matterof-fact heads, that absenteeism was an evil, and actually proposed laws to restrain it: the discovery, that "the income of a landlord when he is an absentee, is as much expended in Ireland as if he were living in it," was reserved for these enlightened times. It is cruel, however, of our instructors, to keep us so much in the dark, as to how this miracle is performed: they profess to know all the mysteries of their science, and, like free-masons, keep the secret to themselves. Dr. Franklin represents a philosopher as being sadly puzzled, on opening his window, to know, whether he had let in the light, or let out the darkness; but our modern political philosophers do neither; and when we complain that we cannot

1 Morning Chronicle, Sept. 16th, 1825. Letter signed J. S.

I say, "Ricardo school," because the new sect of political economists has been so denominated; though I think it is rather hard on the fame of Mr. Ricardo, to be held responsible for all the reveries of those who choose to call themselves his disciples.

understand their doctrines, they call us, I must say, rather uncourteously, "a set of declaimers," and "incurably ignorant." I Notwithstanding the taunting and triumphant style of the gentleman I have quoted, he has thrown no more light on the subject than his predecessors have done.

We will suppose the expenditure of Irish absentees in England, and on the Continent of Europe, altogether, to be three millions sterling a year.

We will suppose also, that Irish commodities to the amount of three millions sterling a year, are actually exported in consequence of their being absentees.

Thus, there are three millions worth of Irish commodities consumed, whether the landlords reside abroad, or at home.

As there is the same quantity and value of Irish commodities consumed annually, whether the Irish landlords reside abroad, or at home, there will, in either case, be the same amount and value annually produced.

There being the same quantity and value of Irish commodities annually produced, there is the same quantity of labor and capital employed in producing them, whether they are consumed abroad, or at home.

Thus far we go on smoothly; but I am afraid we cannot travel together much further.

The same quantity and value of Irish commodities would not be produced, unless they could be sold.

As the consumption is the same, whether the landlords reside at home, or abroad, they must be sold to somebody for distribution. If they are consumed abroad, they must be sold to, and exported by Irish merchants, and by them sold to foreign tradesmen. If they are consumed in Ireland, they must also be sold to Irish merchants, or wholesale dealers, who sell them to Irish tradesmen;-shopkeepers.

The Irish merchants who export them may be supposed to get a profit thereon.

The Irish merchants who buy them to sell to Irish tradesmen may be supposed to get a profit thereon.

Thus, whether they are sold at home, or exported, an Irish merchant gets a profit thereon.

Here we must part.

When they are sold in Ireland, they are sold to IRISH wholesale dealers, who again sell them to IRISH tradesmen, who retail them, both of whom get a profit thereon.

When they are exported, they are sold to FOREIGN wholesale dealers, who again sell them to FOREIGN tradesmen, who retail them, both of whom get a profit thereon.

Morning Chronicle, Sept. 16th, 1825. Letter signed J. S.

Therefore, the whole retail profit which is gained on these Irish commodities when they are consumed abroad, is lost to the Irish tradesmen, and is gained by foreign tradesmen.

So that, if the expenditure of Irish absentees abroad be three millions sterling a year, the retail profit on the whole three millions is given to other countries, and lost to Ireland.

This, however, neither the facetious correspondent of the Morning Chronicle, nor the Ricardo lecturer himself, have been able to perceive.

The profits of the retail trade vary according to the nature of the commodities; perhaps from 5 or 7 per cent. to 50 or 100 per cent. on common articles of consumption, particularly most kinds of groceries, and on the lower qualities of linen-drapery, they are generally very moderate: on fancy goods, especially of the higher class of fashionable articles, they are necessarily immoderate, in consequence of the great loss on what may remain unsold. I think the average profit of the retail trade, taking all its branches, may be safely estimated at 20, or perhaps 25 per cent. ; thus, according to this estimate, there is a loss to Ireland, by absenteeism, of 600,000l. a year, but more probably 750,000l. a year, by the expenditure of three millions of Irish revenue abroad. But as it is chiefly the higher classes of society who become absentees, the profits on whose consumption of commodities considerably exceed the average rate of profits, it is probable that the loss to Ireland by absenteeism exceeds one million sterling a year.

The next question that occurs, is:

"Would not the population of the country be benefited by the expenditure among them of a certain portion of the rent which has been remitted?" This, really, is petitioning hard for some mitigation of Mr. M'Culloch's doctrine; but the relentless philosopher will not budge an inch. He says,

"No; I do not see how it could be benefited in the least. If you have a certain value laid out against Irish commodities in the one case, you will have a certain value laid out against them in the other. The cattle are either exported to England, or they stay at home; if they are exported, the landlord will receive an equivalent for them in English commodities; if they are not, he will receive an equivalent for them in Irish commodities. So that in both cases the landlord lives on the cattle, or on the value of the cattle; and whether he lives in Ireland or England, there is obviously just the same amount of commodities for the people of Ireland to subsist on; for by the supposition which is made, the raising of cattle is the most advantageous mode in which the farmers can pay their rents."

Nothing can more strikingly portray the singular confusion

of ideas which prevails in the Ricardo school, than this reply; in which, except the simple negation it begins with, there is not one single word that applies to the main point of the question. Every body knows that it makes no more difference to the landlord, whether he eats the revenue derived from the sale of the cattle in London, or in Dublin, than it does to the cattle where they are eaten and it is undoubtedly true, that in either case," there is obviously, just the same amount of commodities for the people of Ireland to subsist on;" but why "the population of the country would not be benefited by the expenditure among them of a certain portion of the rent," remains unexplained.

Whoever will trace the progress of commodities from their production to their consumption, and note where, and to whom, the profits derived from the distribution of them fall, will be at no loss to perceive where the difference to Ireland lies, by the cattle being eaten in London instead of Dublin: but, if he should find any difficulty in the solution of this problem, every salesman in Smithfield, and every butcher in London, or in Dublin, can solve it for him.

To the next question, viz.

"Would it result from the principles laid down by you, that confining the question to those considerations which have been adverted to, it would be the same thing, in point of fact to Ireland, whether the whole gentry of the country were absentees or not, as far as these considerations go?"

Mr. McCulloch replied:

"I think very nearly the same thing. If I may be allowed to explain, I will state one point in which I think there would be a small difference. I think, so far as regards the purchase of all sorts of labor, except that of mere menial servants, absentee expenditure is never injurious to a country. The only injury, as it appears to me, that a country can ever sustain with reference to wealth from absentee expenditure, is, that there may be a few menial servants thrown out of employment when landlords leave the country, unless they take their servants along with them; but to whatever extent menials may be thrown out of employment, if they have the effect to reduce the rate of wages, they will increase the rate of profit. In a country, however, where absenteeism has been so long prevalent as in Ireland, I should say that this circumstance cannot have any perceptible effect."

This, indeed, is at least consistent; for certainly, if the absence of one hundred landlords be not injurious, the absence of a thousand will not, or of ten thousand. But the Ricardo school is here (no unusual thing) at variance with itself. It is one of its distinguishing doctrines, that, "the benefit which is derived from exchanging one commodity for another, arises, in all cases, from

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the commodity received, not from the commodity given. When one country exchanges; in other words, when one country traffics with another, the whole of its advantages consists in the commodities imported. It benefits by the importation, and by nothing else." Perhaps, gallant champion of the Morning Chronicle, you may be able to tell us what Ireland receives for the expenditure of absentees.-"Perhaps you may-but if you can, you can do more than I can.'

"The only injury," as it appears to Mr. McCulloch, "that a country can ever sustain with reference to wealth from absentee expenditure, is, that there may be a few menial servants thrown out of employment:" but he comforts us with the assurance, that, if it should "have the effect to reduce the rate of wages, it will increase the rate of profit."

It is a favorite doctrine of Mr. Ricardo, "that the rate of profits can never be increased but by a fall in wages, and that there can be no permanent fall of wages but in consequence of a fall of the necessaries on which wages are expended" (ch. 7). Unluckily for the menials thus thrown out of employment, no fall of the necessaries on which wages are expended takes place; and, I am unable to discover what benefit it would be to Ireland, even if the rate of profit were increased, at the expense of the laborers.

But, it does seem to be questionable, whether a fall in wages, from whatever cause, can permanently increase the rate of profits. The competition which universally takes place in business will always prevent a permanent increase of the rate of profits. The discussion of this subject, however, would lead beyond the bounds which I have prescribed to myself.

The idea, that because absenteeism has been so long prevalent in Ireland, it cannot have any perceptible effect," may excite a smile, but requires no comment.

The next question that occurs is,

"When an agent wishes to remit, suppose 10007. of Irish rent to a landlord not resident in the country, and buys a bill of exchange in Dublin, has not that bill of exchange been actually sold, and does it not represent at the time, a previous exportation of Irish produce?"

To this knotty question Mr. M'Culloch replied;

"It may not represent a previous exportation of Irish produce; but it will either represent a previous or a subsequent exportation."

It is perfectly true that the bill will either represent a previous or a subsequent exportation;" but which does it generally

1 Mr. Mill's Elements of Political Economy, ch. 3. sect. 5.
Morning Chronicle, Sept. 16th, 1825. Letter signed J. S.

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