A Contribution to the Critique of Political EconomyMarx, Karl
Philosophy
A Contribution to the Critique of Political Economy
Marx, Karl
Economics; Marxian economics
With what violence to actual facts Ricardo has to explain them in
the sense of his abstract theory, a few illustrations will suffice
to show. He maintains, e. g. that in years of poor crops, which
happened frequently in England during 1800-1820, gold is exported not
because corn is needed and gold as money is at all times an effectual
means of purchase in the world market, but because gold is in such
cases depreciated in its value as compared with other commodities
and, therefore, the currency of the country in which there has been
a failure of crops is depreciated with respect to other national
currencies. “In consequence of a bad harvest, a country having been
deprived of a part of its commodities ... the currency which was
before at its just level ... become(s) redundant,” and prices of all
commodities rise in consequence.[145] Contrary to this paradoxical
interpretation it has been proven statistically that from 1793 to
the present time, whenever England had a bad harvest the available
supply of currency not only did not become superabundant, but became
inadequate and that, therefore, more money circulated and had to
circulate on such occasions.[146]
In the same manner, Ricardo maintained, with reference to Napoleon’s
Continental System and the English Blockade Decree, that the English
exported gold instead of commodities to the Continent, because their
money was depreciated with respect to the money on the Continent, that
their commodities were, therefore, more high priced, which made it
a more profitable commercial speculation to export gold than goods.
According to him England was a market in which commodities were dear
and money was cheap, while on the Continent commodities were cheap
and money was dear. The trouble, according to an English writer, was
“the ruinously low prices of our manufactures and of our colonial
productions under the operation ... of the ‘Continental System’ during
the last six years of the war.... The prices of sugar and coffee,
for instance, on the Continent, computed in gold, were four or five
times higher than their prices in England, computed in bank-notes. I
am speaking ... of the times in which the French chemists discovered
sugar in beet-root, and a substitute for coffee in chicory; and when
the English grazier tried experiments upon fattening oxen with treacle
and molasses―of the times when we took possession of the island of
Heligoland, in order to form there a depot of goods to facilitate, if
possible, the smuggling of them into the north of Europe; and when
the lighter descriptions of British manufactures found their way into
Germany through Turkey.... Almost all the merchandise of the world
accumulated in our warehouses, where they became impounded, except when
some small quantity was released by a French License, for which the
merchants at Hamburgh and Amsterdam had, perhaps, given Napoleon such
a sum as forty or fifty thousand pounds. They must have been strange
merchants ...
Public-domain text, read in full here on John Shaqi.
Reviews
Reviews
No reviews yet
Be the first to share your thoughts on this work.
Elsewhere in the archive
Join the Discussion
Join the discussion
Sign in to leave a comment or review.
Sign InorCreate an account