Ch. I) General Nature and Effects of the  Foster: Balance of Debt
Balance of Trade

The balance of trade is generally understood to signify the excess of exports over imports. (3) Aber z.B. Ireland’s remittances for absentees, the interest of her debt paid in London, Great Britain’s remittances for her foreign expenditure, are all operations unconnected with commerce … which influence the wealth of the country, and the rates of their exchanges. (3)

Er nennt:

  •  Hervorhebung in der Quelle.
    balance of trade
    , the difference between commercial exports and imports;
  •  Hervorhebung in der Quelle.
    balance of debt
    , the difference of money to be paid, and money to be received. The balance of trade forms a part of the balance of debts. (4)

Exports  Hervorhebung in der Quelle.
exceed imports
… they have actually exceeded them to a great amount, during the whole of the last century in favour of England; yet … the balance of  Hervorhebung in der Quelle.
… cannot be permanently favourable or unfavourable to any country on the whole of its transactions. (4)

1) The balance of debt may continue permanently favourable or unfavourable to any country, between it and any other country, though not between it and the whole world.

2) The balance of debt may be for or against any one country with the whole world, for a limited time: great foreign expenditure, bad harvests, sudden emigrations of the proprietors etc.

3) As the commerce of the country increases, it may demand an additional quantity of precious metals for its circulation, and therefore a part of the surplus brought in by the balance of debt will be retained for that purpose.

In every commercial country there must be a circulating medium proportionate to its demand. (5)

 Marx exzerpierte Henry Thorntons „An Enquiry into the Nature and Effects of the Paper Credit of Great Britain“ (London 1802) 1851 in Londoner Heft VI (MEGA² IV/7. S. 506–527). Das aus Foster notierte Zitat exzerpierte Marx damals nicht.
(Thornton sagt in seinem Essay on Paper Credit, Note I, p. 178: „The quantity of money necessary for performing a certain number of exchanges in a given time, may be considered as nearly in the inverse ratio of its velocity of circulation.“)

The greater we suppose the entire amount of the circulating medium in any country, while the  Foster: velocity of circulation and the extent of its commerce
velocity of its commerce
continue the same, of the less value any given portion of it must obviously become. (6  Kommentar von Marx.
Hier der Humesche etc Unsinn
) (6) So wenn der Commerce eines Landes 10 Mill. £ fordert, und es wird 1 Mill. Gold zugefügt, so the 11,000,000 represent exactly the same value as the 10,000,000 did before; each million and each pound must have lost 1/10 of its value, that is, represent 1/10 less than it did before such increase took place. (7) Besteht aber das circulating medium aus den precious metals, so: »the precious metals, like every other commodity, seek a market where they are dear, and retire from one where they are cheap. The trade of the bullion-merchant for ever prevents their value becoming permanently less or greater in any one country than in the rest. (7) (Their intrinsic value is least in those countries which have the most direct communication with the mines; in all, it compounded of their value at the mines, and of the expense of their carriage.« (7 Note)[)] The only mode in which the (überschüssige) bullion can be exported, is in exchange for commodities. The exportation of the redundant bullion, and the importation of the commodities for which it is ultimately exchanged, are carried on by different hands and distinct capitals: the latter is however the necessary consequence of the former, as it is impossible  Zusatz von Marx.
for any country to part with bullion, or any other commodities, without receiving value of some kind in return. The operations of the bullion merchant therefore augment the quantity of imports in the year following, and thus restore that equality of the imports to the exports, which the tendency of the precious metals to preserve every where an equality of value must necessarily occasion, unless some other mode of their application is provided. (8)

Von 1700–1800 die respective balances of trade in favour of England zusammen über 348 Mill. £. St.; their real value much greater. ([8,] 9)

Die  Hervorhebung in der Quelle.
Foreign Expenditure
of Great Britain … accounts for the application of the bullion brought in by the balance of trade, and at the same time the cause which gave rise to that balance. (9) Had it not been for the foreign expenditure, the balance of trade could not have been in her favour during the century, to a greater amount than the demand of the country for plate and coin. (9) However great might have been the excess of exports during any limited time, proportionate must have been the subsequent increase of imports, which the trade of the bullion merchant would necessarily have occasioned. (10)

The trade of the bullion merchant for ever prevents the balance of debt being permanently  Hervorhebung in der Quelle.
in favor of a country
, by continually exporting in exchange for commodities the surplus quantity of the precious metals which a temporary balance of debt had introduced. (10)

Ferner: When an unfavourable balance of debt has been paid in the precious metals, the demand for the precious metals which will be universally felt, in consequence of the exportation of a part of what was necessary to circulation, immediately enhances the value of that portion which has been left; but the dearness of the precious metals, and the cheapness of the commodities are exactly the same: the want of the precious metals, which will be generally felt, must give birth to an increase of produce and manufactures, by which alone they can be obtained; and the cheapness of these commodities, which necessarily ensues on the demand for the precious metals, attracts the foreign market. (11) »The productions of that country, by their cheapness, compared to the precious metals, will be forced out to foreign countries; as, on the other hand, the dearness of the precious metals will invite them to flow into that country, in exchange for its commodities: – exports therefore increase, until the quantity of the precious metals required for the commerce of the country is restored. The trade of the bullion merchant in this instance, as in the former, regulates the amount of the precious metals within the country. When the balance of debt is in favour of any country, his operations increase its imports; when it is unfavourable, they augment its exports.« ([11,] 12)

The willingness of foreign nations to buy, is increased just as much as the necessity of those at home to  Foster: sell
. The first find their gold cheap, and the commodities to be bought with it dear; the second find specie dear, and their commodities cheap. (12, 13)|


Aber daher folgt nicht  Hervorhebung in der Quelle.
, daß „the greater is the scarcity of circulating medium, the more effectual is the stimulus applied to industry, to produce those commodities, by which alone that circulating medium can be obtained“. (13) Denn Herr Thornton hat gezeigt, bei Gelegenheit der Contraktion der Bank o. E.  Zusatz von Marx.
(worauf 1797 die Suspension)
that, where the demand arose from  Hervorhebung in der Quelle.
sudden alarm
, which, by impeding the velocity of circulation, rendered a greater amount of circulating medium temporarily necessary, to augment that alarm tenfold, and to bring circulation altogether to a stand, was obviously an aggravation, instead of a remedy for the evil (14).

[»]If the exports to all the world could be added to the amount of specie exported, they would be found equal to the amount of imports, and of foreign expenditure.« (16) Während der Kriege »der excess of her (Great Britain’s) exports above her imports was precisely that part of her produce for which she received no value in return[«]. (17) It was no loss to the merchants, but it was to the nation; for it was the nation that ultimately paid the merchants … not foreign nations. (17)

The operation appears to have been practically as follows: – a portion of British Capital was borrowed by the gvt. to defray the expenses of the nation, and taxes imposed for the payment of the interest; that part of the money lent, which was destined for foreign expenditure, was necessarily sent out either in specie or in bills of exchange, but, in each case,  Hervorhebung in der Quelle.
necessarily forced
the exportation of British produce to that amount
, to pay for these bills of exchange; for the specie which was sent out, was to be recovered by the export of manufactures, and the bills of exchange for the same reason could be answered only by exportation to their amount. The bills drawn on government by their agents abroad, and discounted in countries which were the theatre of expense, represented the expenditure in the first instance; but these bills furnished the foreign discounters at once with means, and with the temptation*), to become the purchasers of British manufactures, and laid Gt. Britain under the absolute necessity of increasing her exports to the amount of those bills. (* With the temptation, as they were necessarily discounted at an unfavourable exchange. In this instance, the unfavourable exchange was the cause of the balance of trade, and not the effect of it. 18 Note) The  Hervorhebung in der Quelle.
foreign expenditure may therefore be considered as having been paid for in exports, in the first instance
. (18)  Kommentar von Marx.
(Seine Meinung ist, daß specie exported must be bought back to fill the void caused in the circulating medium by the specie export. Dieß ist die echte Currency Scheisse!)

It is obvious that  Hervorhebung in der Quelle.
the capital of the British exporters was replaced not by the capitals of foreign consumers, but by the capital of the British nation;
and the only return the nation received, was the unproductive labour of her soldiers and sailors, and the still more unproductive labour of the princes whom she subsidised. … considered in a financial or commercial light, it operated no otherwise on the wealth of Gr. Britain, than if, at the expense of the nation, it had been purchased by the gvt., and thrown into the sea. (19)

For the 8 years of peace, ending 1793, the amount of the balance of trade in favour of Great Britain was in all 13,685,746l. official value. For the 8 years of war which succeeded, it was 46,905,169l. official value; or, if estimated 70% higher, to give its real value, 79,738,787l. (See: Mr. Irving’s Evidence before the Secret Committee of the Lords, appointed to investigate the Affairs of the Bank, 1797 ) Thus we find a prodigious increase of foreign expenditure, accompanied by a prodigious increase of balance of trade. In no other mode Kommentar von Marx.
jezt kommt der Blödsinn!
could the Quantity of specie requisite to Grt. Britain be kept in circulation than by exporting her produce to the amount of her foreign expenditure. (15, 16)

The amount of the foreign expenditure … during the first 4 years of the war … £33,510,779£ £33,510,779. (See Report of the Secret Committee of the House of Lords, 1797, p. 253 ). The exports were principally increased to those countries which were the theatre of our expenses. The exports to Germany were more than quadrupled. (Sieh eben citirten Report of the Secret Committee etc, 1797, p. 254). During Peace they were not above 1,900,000l. p. an.; but 1795 and 1796 they were above 8 Mill. £ St. each year. (16)

Lord King has accounted in another manner for the balance of trade being permanently in favour of England, in that commerce of which the tables of Exports and Imports take notice. According to King, the possession of the Indian commerce, which is carried on by the exchange of European silver for Indian commodities, „involves the necessity of maintaining a favourable balance with the continent of Europe“; by which alone that silver can be obtained. (19) Aber, sagt Foster: The official balance of trade in favour of Gt. Britain with all countries, except the East Indies, during the 18. century, amounted to 348 millions; the real value was possibly above 500 millions.  Kommentar von Marx.
⦗Der Esel glaubt daß diese 500 Mill. in precious metals importirt werden!⦘
Yet certainly Gt. Britain did not export 500 millions worth of silver to India during that period. (21)

 Kommentar von Marx.
Wie sich alle facts verdrehn, im Kopf der currency principle Besessnen, zeigt Foster’s Erklärung über den Commerce der East India Co. mit East India. Wenn seine Theorie richtig, so müßte das fortwährende Häufen von Silber in Indien dort das Geld (Silber) depreciirt und den Preis der indischen Waaren so furchtbar erhöht haben, so daß der Export indischer Waaren durch die Depreciation der Currency checked and Import of foreign commodities excited. Foster’s Bullion merchant in India must at once have „forced“ by the export of Silver to Europe the Import of European Commodities into India. Statt dessen:

»The motives for foreign nations to carry on such a commerce ⦗ Zusatz von Marx. Marx exzerpiert hier erneut einen Satz, den er schon oben auf S. 37 des vorliegenden Hefts notiert hat. Da er den Satz auf S. 37 mit einem kleinen Fehler (buy statt sell) abschreibt, ist der vorliegende Satz wahrscheinlich erneut aus dem Buch, und nicht aus dem früheren Exzerpt abgeschrieben.
nämlich grade vorher geht der Satz:
The willingness of foreign nations to buy, is increased just as much as the necessity of those at home to sell. The first find their gold cheap, and the commodities to be bought with it dear; the second find specie dear, and their commodities cheap. p. 12, 13⦘, will be similar to that which induce our East India Co. constantly to export specie to India, in exchange for its commodities, and not  Hervorhebung in der Quelle.
vice versa
, because that specie has a greater relative value to commodities in India, than in Europe.« (13)

 Kommentar von Marx.
Also obgleich beständig (constantly) silver poured into India from Europe for 100 years, the whole 18. century, trotz des beständigen Wachsens der Quantität von Silber in India, bleibt der relative Werth of silver verglichen mit Waaren – d.h. dem Preis der Waaren in Indien, [–] wohlfeiler als niedriger in Europa. Und dieß führt Foster dafür als |39 Beweis, daß mit der increase of the quantity of the precious metals their value must sink and that of commodities rise!

 Kommentar von Marx.
Indien macht d. currency pri war von vornherein der Stein des Anstosses für die currency principle men. Aber während Foster einfach vergißt, daß er grade mit Indien das Gegentheil von dem zeigt, was er zeigen will, erklärt sich Vanderlind die Sache daraus, daß die Inder das Silber vergraben, und es daher nicht als currency wirkt. Er giebt also zu – was ebenfalls sein Princip aufhebt – daß Geld noch andre Functionen hat als die of currency.

Ireland: The foreign expenditure of Ireland besteht aus 2 articles, the remittances to absentees (2 Mill. £. St. p. an. stated in the Evidence, p. 2, before quoted, but probably far less) and the interest of her debt payable in London (1,275,000£. p.a., to which about 250,000l. will be added by the expenses of this year,  Zusatz von Marx.
viz. 1804
) (p. 22)

Supposing no loans to be raised in England, the first and immediate effect which their (the absentee’s) residence abroad produces is to force an excess of Irish exports above imports, to the same value as the remittances which are to be made to them. (23)

Suppose the case of a single absentee proprietor, who has an estate in Ireland of the value of 20,000£. p.a. His rents must be remitted to him either in gold, or in bills of exchange. If they are remitted in gold, an increase of Irish produce must be sent out to recover specie to an equal amount, as indespendable to the circulation of Ireland  Kommentar von Marx.
(Hier guckt der Eselsfuß wieder heraus.)
; and therefore may be considered as having been sent out, in the first instance, in discharge of that remittance. (23, 24)

But the fact is, that the remittances to the absentees seldom or never are made in specie. This was fully admitted in the evidence taken by the Select Committee. Even in the North of Ireland, were where the rents are paid in gold, the gold does not leave the country. The remittances are made in bills at a course of exchange not sufficiently high to tempt the gold out of the country  Kommentar von Marx.
(also wirkt der Herr Bulliontrader unter Botmässigkeit des Wechselkurs. Strömt Gold in ein Land ein, so der Wechselkurs für es, und, all circumstances remaining the same, der bullion trader can send out no gold)
. But when the remittances are made in bills of exchange … the bill of exchange is either drawn in Ireland upon London, and bought by the agent in Ireland to be remitted to the proprietor. Dann it has necessarily been drawn in consequence of a demand which the Irish exporting merchant has upon England. If, on the other hand, the bill be drawn by the absentee in London, on his agent or banker in Dublin, it cannot be sold on the Exchange in London, unless to some merchant who has imported, or is going to import, commodities from Ireland. Or if, for want of a purchaser in London, the bill is remitted to Ireland in the first instance for payment, and specie is in consequence exported, still that must occasion an exportation of produce to recover specie to an equal amount. (24, 25)

Had they (the absentees) continued in Ireland, they would have given birth to a quantity of produce equal in value to their rents, and  Hervorhebung in der Quelle.
consumed it in Ireland;
but living in England, they still give birth to an equal amount of Irish produce, but consume it  Foster: in England
in Ireland
 … The quantities produced and consumed in both cases the same in value … but different in the nature of the items of which they are composed. The Irish produce … consumed in Ireland … would have been such as his (the Proprietor’s) taste and pleasure should have dictated; but on his emigration they become such as the foreign market shall demand. The consumers also are different; for it is not to be supposed that the absentee spends his income in the purchase of Irish commodities; on the contrary, he spends his Irish rents in the encouragement of English industry; but then he is the cause that others become the consumers of Irish produce of another description, and to an equal amount. The Irish producers are also different. Had the proprietor remained at home, he would have called forth industry, probably on his own estate, and in its immediate neighbourhood; but when settled in England, the proprietor of an estate in Munster, may perhaps, to a much greater degree, encourage the industry of Ulster. lt is he, indeed, that gives birth to the quantity of produce; but the quality must be decided by the demand of the foreign market. (25, 26)

Of the few who have been aware that the effect of the absentees was to force an increase of exports to the amount of their remittances, some have fallen into an extraordinary error, and concluded, that the absentees  Hervorhebung und Ausrufezeichen in der Quelle.
were therefore so far beneficial!
But the supporters of so strange a paradox might have observed a distinction between the exports that are exchanged for imports, and those which are to discharge the foreign expenditure of the country – a  Hervorhebung in der Quelle.
distinction no less important than that the former are paid for, but the latter not
. The exporting merchants, indeed, are paid alike for all that they export; but it is Ireland, and not another nation, that pays for that portion which is sent in discharge of her foreign expenditure. The capital of the Irish merchant, who exports the produce which is to answer for the remittances to absentees, has his capital replaced, not by British capital, but by the rents of the absentees. It is Ireland paid by Ireland to work for England. It is the part of England to enjoy, and of Ireland to labour. The only value that Ireland receives in return, is the permission to keep at home her circulating medium.  Kommentar von Marx.
… If a tradesman found that of what he sold 2/3 were regularly paid for, but the remaining third never, he would certainly consider  Hervorhebung in der Quelle.
his balance of trade
as the only part of it that did not enrich him. The case of the nation is the same as that of the individual. (26, 27)

 Bemerkung von Marx.
Notabene: Hier zeigt sich wieder die bonne foi des Herrn McCullochs! Er kopirt von Foster den incitement of industry durch die absentees, aber vergißt Foster’s ausdrückliche Bemerkungen über die Schädlichkeit dieses excitement für Irland zu kopiren! Lumpenhund!

In den Irish pamphlets und speeches des 18. Jh. immer die Angst, daß Irland in Folge seiner remittances  Foster: that their gold was about to leave them
des Baaren entblößt werden würde
. Prophezeiung nie erfüllt „leave poor Ireland without money“. »A prediction annually made, never fulfilled, yet still repeated.[«] (28) Selbst Swift schrieb in diesem Sinn. (l.c.) In einem Pamphlet (anonymous) von 1729 heißt es: (Es ist a treatise „on the state of Ireland“): „It appears plainly from this list of absentees, and the estimate of the quantity of species they may be supposed to draw out of the kingdom, that no other country labours under so wastful a drain of its treasure as Ireland does at present by an annual remittance of above 600,000l. to our gentlemen abroad. lt is believed by many who understand our money affairs, that there is less species now in the kingdom than there was at any one time since the Revolution, if not since the Restoration. The most sanguine do not reckon that we have £400,000 now remaining; if so, ’tis impossible to subsist much longer under such a train drain … and a constant course of exchange against us, … it evidently follows, that all our remaining species will in a little time be carried off. … It is to be feared this misfortune will fall upon us much sooner than could be thought of, since we are credibly informed that Miss Edwards’s estate in this kingdom, said to be worth 150,000l. is immediately to be sold, and the purchase money sent away; that a noble lord of the greatest fortune here is to have 80,000l. remitted, and that several others are selling or mortgaging their lands for large sums.  Hervorhebungen in der Quelle.
If all these designs should take place, they will be sufficient to carry off all the circulating cash of |40 kingdom in a very short time
.“ (29, 30)

After the revolution of near 80 years, we may now observe, that notwithstanding Ireland possessed only 400,000l. in specie, and had an annual subtraction of 600,000l. according to the author from that sum; notwithstanding the constant course of exchange complained of; and notwithstanding the sale of Miss Edwards’s estate; Ireland never was exhausted of its specie until the measure of the restriction rendered it superfluous; on the contrary, though the absentees have greatly increased since 1729, and though estates, greatly superior to Miss Edwards’s, have since been disposed of, Ireland has increased her stock of specie from 400,000£., in 1729, to 5 millons, at which it was estimated in 1797. (31) (Evidence Committee p. 97 und 129)

Ireland, compelled to export the value of above 3,000,000l. … the effect of such a balance of debt not being to cause an exportation of specie, but an exportation of produce without return, was zwingt Ireland to labour severely, and to little purpose, to save a great portion of her annual produce, not for the purpose of accumulating a capital for herself, but of sending it to increase both the revenue and the capital of another country. (31, 32)

 Zusammenfassung von Marx. Foster: It certainly is possible that an artificial system may counteract the operation of the balance [...]
Dieser Prozeß kann aber durch falsche Maßregeln gestört werden
. Dazu rechnet er »the expedient of raising the loans in England for the service of Ireland« (p. 32)

1) It enables Ireland to discharge the balance of debt in another manner than by the exportation of her own produce and manufactures. (p. 33)

 Kommentar von Marx.
Das was nun folgt ist eine der schönsten Exemplificationen der currency principle delusions of International Commerce, die man sich denken kann:

»By the unnatural supply of circulating medium which it occasions in Ireland, it entirely counteracts that demand for circulating medium which the balance of debt would otherwise occasion, and the scarcity of which wouldgive existence to such an increase of produce. Preventing the scarcity of circulating medium, it necessarily prevents the existence of all that increased produce which the scarcity of circulating medium would otherwise have occasioned.  Kommentar von Marx.
(Warum, in dieser Lausetheorie, sollte die scarcity of the circulating medium, statt an increase, not rather cause a decrease of production? The produce being decreased to a certain point, the relative scarcity of the circulating medium would be converted into sufficiency or even abundance.)
At the moment when it is most for the interest of Ireland that the circulating medium should be as dear as possible, it renders it cheap.« (33) [»]As far as the balance of debt goes, the loan discharges it, and immediately returns to England in payment of that amount; which balance, had it not been for the remittance of the loan to Ireland, would have been paid for in produce, which  Hervorhebung in der Quelle.
would have
existed.« (33)  Kommentar von Marx, zum Großteil wieder von ihm gestrichen.
⦗dear, dear! Gesetzt erstens, die Irländer haben die Sauenglische Regierung in Irland aus eigner Tasche zu zahlen (ohne loan dafür in London) (der loan auch in London ist natürlich auf die Steuern in Irland berechnet, und ist nur advance, sort of Exchequer Bill upon Irish Taxes, wofür Irland die Zinsen zu zahlen hat) u. ausserdem Geld nach England zu remittiren für die absentees.

But … the loan remitted to England may perhaps exceed the amount of the balance of debt due by Ireland.  Kommentar von Marx.
(Und warum soll Irland den Engländern mehr zahlen als es ihnen schuldet?)
 … No country can retain a greater quantity of specie than it can employ as the representative of its commerce  Zusatz von Marx.
(er meint als currency)
, at the same value as specie is employed by the adjoining nations. Now in whatever manner the loan is remitted to Ireland, the medium in which it is remitted must be a representative of value also in England; and not finding in Ireland any value to represent  Zusatz von Marx.
, it can no more continue in Ireland, than if it were so much specie: it therefore instantly leaves Ireland and returns to England; but after having discharged the demand of England against Ireland, it can return to England only in exchange for commodities. (34)  Kommentar von Marx. Alternative Entzifferung: müßte.
(Selbst innerhalb der bornirten Vorstellungen des Kerls mu(?)ßte er für seine Zeit something wissen von placing capital at interest in foreign countries).

 Hervorhebung in der Quelle.
[»]The English loan therefore diminishes the exports of Ireland by the amount of the balance of debt, and increases the imports of Ireland by the excess of loan above the balance of debt.«
(34)  Kommentar von Marx.
⦗Die Angst des Kerls ist sehr überflüssig. So weit the English loan to Ireland = balance of debt due for remittances to Irish absentees in England, so wird nichts on this account von Irland nach England an Produce, nor of money from England to Ireland geschickt. In diesem Fall hielte also Irland sein Surplusproduce, statt es in Zahlung von Rent umsonst nach England zu schicken. Die Creation dieses surplusproduce ist erzwungen durch die Existenz der Rente, due to the landlords. Sie ist nicht erzwungen, kein Geschöpf des absenteeism dieser landlords. Das produce will exist, ganz unabhängig von der balance of indebtedness zwischen England und Irland. Der farmer muß nach wie vor a surplus produce = rent produciren. Entweder ist es nun möglich dieß surplusproduce im Inland zu verkaufen. Tant mieux. Oder es wird nach England geschickt, aber jezt nicht umsonst, sondern gegen Equivalent. Irish linnen etc, welches statt Korn etc nach England gehn mag, findet Absatz in England nicht weil es die Form ist, worin die Rente, national betrachtet, bezahlt, sondern weil es in England demanded wird. Andrerseits, wenn der English loan to Ireland > balance of debt due for remittances to Irish absentees in England, so braucht nach dem Princip des Kerls selbst nicht nach England zurückzukehrn(?). Da nämlich Theil des surplusproduce wenigstens in Irland bleibt unter den vorausgesetzten Umständen, so ist more value to represent und daher more Geld als currency absorbirbar, nach dem Princip des Kerls selbst.⦘ ⦗Im angegebnen Fall zahlt England die Rente aus. Andrerseits wird Irland Schuldner für die Zinsen des loan.⦘

[»]The operation is practically this: When the loan is to be remitted, the Treasury in Dublin draws bills on their agent in London, and sell them to persons wanting to remit in Dublin: but the purchaser of their bills in Dublin has but two possible modes of applying them, either in liquidation of a demand against him in England, or, as is probably more frequently the case, in purchase of commodities in England to be sold at a profit in Ireland. If he applies the note for the first purpose, it obviously discharges the same office which exports to the amount must otherwise have performed; but if applied for the second … it is so positive an increase of imports etc. In the first case the Treasury draught allows the holder to spare the circulating medium of Ireland  Kommentar von Marx.
, and thereby prevents the exports that must either have gone in its place, or to recover it, if actually sent. In the second instance, the Treasury draught allows the holder to have a demand upon London, which the quantity of the circulating medium in Ireland could not otherwise have permitted.« (34, 35)

 Kommentar von Marx.
⦗If the English loan to Ireland = the Irish Debt to England, Ireland and England are placed upon the foot of countries between which there exists a par of exchange. Voilà tout. The surplusproduce = rent due to the Irish absentees will be eaten up by the English officials and debtholders in Ireland etc. Or the English loan to Ireland It is then the same thing as if the Irish absentees consumed it themselves in Ireland. Or if the English loan to Ireland > than Irish debt to England, let this overplus of loan over debt be = x£. Those x£ are a simple loan by England to Ireland, not in discharge of any former debt incurred by Ireland to England, but a loan pur et simple. That loan may be transmitted to Ireland in bullion or in commodities, or in both. But for our purpose it suffices to suppose the two extreme cases, bullion only or commodities only. If the latter, the commodities may be either of a description which makes them enter into dangerous overwhelming competition with certain branches of Irish industry. So far production may be checked by their import, viz. this form of the English loan. Or the import may take the shape of commodities to be productively consumed in Ireland. Then this form of the English loan will develop Irish production. Both cases are true for all foreign loans (we do not consider here the question of interest, and of loans for unproductive expenditure. Even in the latter case better for Ireland if England pays the capital of her own government expenditure in Ireland and Ireland the interest only than if Ireland had to invest her capital in that unproductive expenditure.) They have nothing at all to do with the state of the circulating medium, its expansion or contraction. On the other hand, if England discharges her loan in the shape of bullion, this is nothing less or more than the general case; not anything particular to Ireland, of a nation borrowing from another capital in the shape of bullion. If |41 it be said, that, the circulating medium being full, the occasion of that bullion must depreciate it to the same amount, this is then true for every nation that contracts a foreign loan, to be remitted in bullion. And this ought to be the doctrine of the currency school. But, then, they ought to go farther, and assert that no new demand springing up – no new effective demand = monied demand, [–] can increase production, hence capital, but can only depreciate the existing currency. And this ought to be the doctrine of the consistent currency men. But Foster’s nonsense consists prima facie in this that he treats this not from this general point of view, but as something peculiar to the relations of England and Ireland.⦘

Thus instead of increasing the capital of Ireland … the loan increases nothing but her expenditure. By swelling her list of imports, it … compels her to consume foreign articles, which she could not otherwise have purchased; at the same time by diminishing her list of exports, it prevents the existence of those articles, the productions of her industry, which, were it not for the loan, the balance of debt would have occasioned. (35, 36) Hence … those  Hervorhebung in der Quelle.
daily lists
of imports and exports of the port of Dublin, whose formidable balance of imports excites at once the astonishment and despair of Irish merchants. (37)  Kommentar von Marx.
(Der Esel vergißt, daß durch die Union die Engländer sich den irischen Markt geöffnet hatten und ihn unter allen Umständen, loan oder nicht, überschwemmt haben werden.)

[»]Even on the supposition that these loans are so much addition to the capital of Ireland, still the amount of money, in which they are sent over, could not continue in the country, since the quantity of circulating medium, which any capital demands, is probably not 1/100 part of that capital. The capital of Grt. Britain has been estimated at 4000 Millions: the circulating medium of Gt. Britain is probably not 1/100 of that sum; therefore, if a loan of 2 mill. is remitted to Ireland, supposing that circulating medium bears the same ratio to capital in Ireland as in England, they who imagine it possible for the money to continue in Ireland, must contend that it has operated an increase, not of 2 mill., but of 200 mill. of capital.« (36 Note)

 Kommentar von Marx.
Der Kerl sagt in einer andern Note, die seinen ganzen Dreck über den Haufen wirft:

»As there is reason to presume that the balance of trade, notwithstanding the loan, was last year in favour of Ireland, it may appear inconsistent to talk of the excess of imports; but it is the commerce of Dublin that is under consideration. The  Foster: excess of exports
at Cork and Belfast
may more than counterbalance; and it appears a confirmation of this theory  Zusatz von Marx.
, when we observe that the same part of Ireland which receives the loan is the place where the imports so much predominate.[«] (38 Note)

Sir John Sinclair , in his History of the Revenue of Great Britain, has collected 21 passages from respectable writers, all men of authority in their day, tending to prove that England was actually undone in 1680, and has been in a progressive state of deterioration ever since. (40, Note).

On year ending 5. Jan. 1803 current value of imports into Ireland: £7,654,113, of Exports £8,571,412, leaving a balance of 917,299£ in favour of Ireland. (41)

On year ending 5 Jan. 1803 Exports + loans etc = 10,031,002l.; Imports + Remittances for absentees = 9,654,113; leaving 376,889 in favour of Ireland. (43)

The interest paid by Ireland for that debt payable in London … is retained in London out of the loan made for Ireland. (43 Note)

 Zusatz von Marx.
Der Esel glaubt, daß es für seine Theorie spreche:
1) daß previous to the practice of Ireland borrowing from England, her exports exceeded her imports, nearly to the amount of her remittances to absentees; 2) that when the practice of borrowing commenced, the excess of her exports were reduced; 3) that as the loans increased, the reduction of that excess of exports … still greater; or perhaps, that it was entirely destroyed, and a balance of imports substituted in its place. (44, 45)  Kommentar von Marx.
All this has nothing to do with his „theory“, but proves only that an excess of exports, merely paid as a tribute without any immediate equivalent or prospective return, will disappear in the same degree that this tribute disappears, whether from one cause or the other.

 Kommentar von Marx.
One of it its ways of disappearing is of course a continuous loan, by the nation which receives the tribute, to that which pays it. (the interest, however, being always paid for the tribute, remitted or cancelled by the loan)

 Kommentar von Marx.
Also alle facts des Kerls haben nichts mit seiner Theorie zu thun.

On average of 5 years, ending March 25, 1794,  Hervorhebung in der Quelle.
before the practice of raising the loans in England had commenced
, the exports exceeded the imports 1,195,810l. 5s. 9d. p. annum, official value. (45) On an average of the 5 succeeding years, ending March 25, 1799,  Hervorhebung in der Quelle.
after the practice of making the loans in England had commenced
, the excess of exports over imports no longer 1,195,810l., but only 466,466l. 12.s. 12s. (45) On an average of the 5 succeeding years, ending Jan. 5, 1804,  Hervorhebung in der Quelle.
when the loan had become much greater
, the excess of exports over imports was not only annihilated, but the imports came to exceed the exports by 1,071,428l. p.a. Dieses leztre statement aber nur according to official value; for, if stated according to the real, there is reason to believe, that the balance of trade would, even during the latter 5 years, appear in favour of Ireland, … aber der official value must suffice for the comparison of one year with another. (45, 46)

The Bank Restriction, ferner, has allowed, if not compelled, a considerable proportion of the specie of the country to be applied to the liquidation of the demands against her. (47)

The foreign expenditure of Gt. Britain forced a balance of trade in her favour, to the amount of that foreign expenditure,  Hervorhebung in der Quelle.
the quantity of specie which was exported, and which the country was able to dispense with. The greater the quantity of specie that could be dispensed with, the less therefore was the balance of trade in favour of Gt. Britain; that is, the less the productions of British industry. The Bank restriction, by enabling the nation to dispense with a very great proportion of the specie, diminished therefore the balance of trade to that amount. ([47, ]48)

Every system of banking displaces a certain proportion of the precious metals as  Hervorhebung in der Quelle.
and the Bank restriction tends to displace them entirely. (51)

Hume dachte Banknotes addition to the circulating medium of the country; and on this is founded his attack on the banking system. A. Smith zeigte daß banknotes sind not addition, but »substitution« für the precious metals.  Zusatz von Marx.
Darauf bemerkt Foster klugscheissend:
Even supposing the banking system acts only by substituting, and not by adding, still it is attended with a loss to a certain degree; f.i., if … the banking system in England has displaced 20 Mill. of gold, still these 20 mill. must be applied, in some manner, in other countries; but as, wherever it is applied, it must depreciate in value, and as the value of the precious metals becomes finally equal in neighbouring countries, the gold that has remained in England will also be depreciated: yet Gt. Britain is a gainer by the operation; for the loss has been divided with all the world, but the gain has been exclusively to her. But if … all countries should adopt the banking system in proportion to their commerce, they none of them would have substituted the cheap in place of the expensive medium, but have made a mere addition to their circulating media, and depreciated them nearly in the same proportion. (51 Note)|


The amount of specie exported from Ireland since the restriction has been  Thomas Thorpe Frank berichtete über den Goldexport 1804: „3,000,000 guineas have been sent out of Ireland.“ (Siehe Report from the Committee 1804. In: House of Lords. The Sessional Papers 1801–1833. Vol. 10. 1803–1804). S. 128–132.)
estimated by Mr. Franks so low as 3 Millions
. (53 52)

Plain linen, staple manufacture of Ireland. In the years ending 25 March

1791 Exported 39,718,706 yds
1796 46,705,313
1797 year of the restriction 36,559,746
1804 37,432,365.

Doch »that diminution may be attributed to other causes«. (p. 54 Note)

That mischievous operation would have … caused to be exported a much greater quantity of specie, had it not been counteracted in the North of Ireland by the steady resolution of the linenmanufactures and merchants to refuse Banknotes, and make all their payments in gold, followed by the practice of several absentee landlords, who required payment of their rents in specie. A considerable quantity of specie has thus been retained in the North of Ireland as its medium of circulation, which, had it not been for this custom, would infallibly have been exported by the Bank restriction. (55)

A nation which confined itself to domestic commerce, might adopt for its circulating medium any substance and form, which it found most convenient; but if it is to support commercial relations with the rest of the world, it must have recourse for a certain extent to the precious metals, as affording the only circulating medium common to them all. (56 6)


  • Inhaltsverzeichnis von Friedrich Engels
  • Heft II. 1869
  • The Daily News, 20. Mai 1869
    • Notiz
      • Kaufmannsrechnung. (Continuatio)
      • John Leslie Foster, (of Lincoln’s Inn): An Essay on the Principle of Commercial Exchanges. London. 1804.
      • Ch. Lyell. Principles of Geology. 7th ed. London 1847.
      • Otto Hausner: Vergleichende Statistik von Europa (Lemberg. 1865) II. Band.
      • Michael Thomas Sadler. M.P.: Ireland; its Evils and their Remedies. 2nd ed. London. 1829