It is constantly alleged in opposition to our principles, that they are good only in theory. But, gentlemen, do you believe that merchants' books are good in practice? It does appear to me that if there is any thing which can have a practical authority, when the object is to prove profit and loss, that this must be commercial accounts. We cannot suppose that all the merchants of the world, for centuries back, should have so little understood their own affairs, as to have kept their books in such a manner as to represent gains as losses, and losses as gains. Truly it would be easier to believe that Mr. Lestiboudois is a bad political economist.
A merchant, one of my friends, having had two business transactions, with very different results, I have been curious to compare on this subject the accounts of the counter with those of the custom-house, interpreted by Mr. Lestiboudois with the sanction of our six hundred legislators.
Mr. T ... despatched from Havre a vessel, freighted, for the United States, with French merchandise, principally Parisian articles, valued at 200,000 francs. Such was the amount entered at the custom-house. The cargo, on its arrival at New Orleans, had paid ten per cent. expenses, and was liable to thirty per cent. duties; which raised its value to 280,000 francs. It was sold at twenty per cent. profit on its original value, which being 40,000 francs, the price of sale was 320,000 francs, which the assignee converted into cotton. This cotton, again, had to pay for expenses of transportation, insurance, commissions, etc., ten per cent.: so that when the return cargo arrived at Havre, its value had risen to 352,000 francs, and it was thus entered at the custom-house. Finally, Mr. T ... realized again on this return cargo twenty per cent. profits; amounting to 70,400 francs. The cotton thus sold for the sum of 422,400 francs.
If Mr. Lestiboudois requires it, I will send him an extract from the books of Mr. T ... He will there see, credited to the account of profit and loss, that is to say, set down as gained, two sums; the one of 40,000, the other of 70,000 francs, and Mr. T ... feels perfectly certain that as regards these, there is no mistake in his accounts.
Now what conclusion does Mr. Lestiboudois draw from the sums entered into the custom-house, in this operation? He thence learns that France has exported 200,000 francs, and imported 352,000; from whence the honorable deputy concludes "that she has spent, dissipated the profits of her previous savings; that she is impoverishing herself and progressing to her ruin; and that she has squandered on a foreign nation 152,000 francs of her capital."
Some time after this transaction, Mr. T ... despatched another vessel, again freighted with domestic produce, to the amount of 200,000 francs. But the vessel foundered after leaving the port, and Mr. T ... had only farther to inscribe on his books two little items, thus worded:
"Sundries due to X, 200,000 francs, for purchase of divers articles despatched by vessel N.
"Profit and loss due to sundries, 200,000 francs, for final and total loss of cargo."
In the meantime the custom-house inscribed 200,000 francs upon its list of exportations, and as there can of course be nothing to balance this entry on the list of importations, it hence follows that Mr. Lestiboudois and the Chamber must see in this wreck a clear profit to France of 200,000 francs.
We may draw hence yet another conclusion, viz.: that according to the Balance of Trade theory, France has an exceedingly simple manner of constantly doubling her capital. It is only necessary, to accomplish this, that she should, after entering into the custom-house her articles for exportation, cause them to be thrown into the sea. By this course, her exportations can speedily be made to equal her capital; importations will be nothing, and our gain will be, all which the ocean will have swallowed up.