My letter was sent to the post before I received yours of yesterday's
date. The parcel you sent me has reached me safe. I am sorry you had so
much trouble about it.
My views respecting the Bank are entirely prospective. The last return
of bank notes in circulation was, I think, larger than any that preceded
it. I have not the paper in London, but I think the circulation of bank
notes then amounted (1815) to 28,000,000 or more[117].
It is dangerous to listen to reports respecting briskness or slackness
of trade. It is I believe certain that the revenue has been uncommonly
productive the last quarter, which is no indication of diminished trade.
As you allow that the loss of the sellers is the gain of the buyers,
you appear to me to attribute effects much too great to the fall of raw
produce which has lately taken place. It does not follow that, because
prices are low, production will be discouraged. If money were to fall
very much in value whilst a country was making great advances in
prosperity, would not production be encouraged, notwithstanding a fall
of prices?
That profits may rise on the land, if population increases faster than
capital, I am not disposed to deny; but this will be a partial rise of
profits on a particular trade, for a limited time, and is very different
from a general rise of profits on trade in general. This admission does
not affect my principle.
Ever truly yours,
DAVID RICARDO.