price of labour, pari passu, would produce neither gain nor
loss. It follows, that if bank paper did advance prices,
nothing would be gained by a nation, in regard to its domestick commerce, and of course, that it can gain nothing by banking, except through the medium of its exported labour.
All the ground therefore upon which banking can operate, as to an increase of value, lies between the domestick and foreign price of exported labour. If wheat is worth eight shillings here, and ten shillings in the foreign market, the influence of bank currency upon the price of wheat, would be limited to two shillings. Beyond these confines, its power to enhance price by exciting competition, cannot extend; and therefore an enhancement within this narrow restriction, comprises the entire retribution within the power of banking to make, for the revenue it extracts. Supposing there exist banks in the United States, operating upon a capital, real or imaginary, of fifty millions of dollars, and receiving a revenue, including dividends, perquisites and expenses, of ten per centum, or five millions annually; this five millions is the sum paid by the United States, for the supposed benefit of having the price of exportable labour enhanced within the limitations just stated. We have before proved that an evil and not a benefit, is conferred on a country, by disordering or raising the prices of labour consumed at home.
Supposing the exportable labour of the United States, to be forty millions annually, then they pay five millions or twelve and an half per centum to banks, upon the total of the subject, the real value of which can possibly be effected by banking; and if the difference between the value of this subject, here and abroad, should not amount to twelve and an half per centum, as is generally the case, it is evident, that a pecuniary loss results to a nation by banking,' because the price paid for it, exceeds any possible enhancement of value within its power.
