A wrong balance of trade raises the price of bullion to the 5 value of coin, And ought to raise proportionally the price of commodities, — How traders obstruct the operation of this principle, while 6 the balance of trade continues fluctuating, And how an overturned balance of trade attaches prices to 7 the denominations of coin, How profits consolidate into prime cost, 8 And are preserved upon articles of home consumption, 9 But are torn away by foreign competition, for articles of — exportation, How this hurts the industrious, and how the state may 10 indemnify them, CHAP. II. Concerning the influence which the imposing the price 11 of coinage, and the duty of seigniorage, in the English mint, will have upon the course of exchange, and trade of Great Britain, Theory of prices upon articles of exportation, — How the course of exchange is regulated, 13 Price of exchange, what? — Where coinage is free, the price of bullion ought to be — invariable, And fluctuating where coinage is imposed, — Bullion in England dearer than in France, 14 Because the price of it is kept up by the mint, — And is allowed to fall in France 8 _per cent._ below the — coin, This a wise regulation, — England loses by this sometimes 8 _per cent._ upon her 15 trade with France, And at a medium 4 _per cent._ as is proved by a matter of 17 fact, Easy to be verified at all times by the price of bullion 18 and course of exchange in the Paris market, When bullion is exported to England, exchange is against — France, Course of exchange no rule for judging of the balance of — trade, but only of the value of coin, The real par not to be calculated by the intrinsic value of 19 the coin, unless bills were drawn in weight of fine bullion, OBJ. Exchange _regulates_ the price of bullion, 20 ANSW. Denied: Exchange only _raises_ its price, the mint — price _pulls it down_, _Balance upon the real par_ no mark of _a balance_ upon — trade, proved by examples, Balance of trade, what? 21 The real par of exchange to be fixed by the fluctuating — value of the coin, not by the permanent quantity of the bullion it contains, Proof of this proposition, 22 Application of these principles to the English trade with 24 France,