Chapter M: T. despatched a ship from Havre to the United States, with a cargo of

French goods, chiefly those known as _articles de Paris_, amounting to 200,000 francs. This was the figure declared at the Customhouse. When the cargo arrived at New Orleans it was charged with 10 per cent, freight and 30 per cent, duty, making a total of 280,000 francs. It was sold with 20 per cent, profit, or 40,000 francs, and produced a total of 320,000 francs, which the consignee invested in cottons. These cottons had still for freight, insurance, commission, etc., to bear a cost of 10 per cent. so that when the new cargo arrived at Havre it had cost 352,000 francs, which was the figure entered in the Customhouse books. Finally M. T. realized upon this return cargo 20 per cent, profit, or 70,400 francs; in other words, the cottons were sold for 422,400 francs.

If M. Lestiboudois desires it, I shall send him an extract from the books of M. T. He will there see _at the credit_ of the _profit and loss_ account--that is to say, as profits--two entries, one of 40,000, another of 70,400 francs, and M. T. is very sure that his accounts are accurate.

And yet, what do the Customhouse books tell M. Lestiboudois regarding this transaction? They tell him simply that France exported 200,000 francs' worth, and imported to the extent of 352,000 francs; whence the honourable deputy concludes "_that she had expended, and dissipated the profits of her anterior economies, that she is impoverishing herself that she is on the high road to ruin, and has given away to the foreigner 152,000 francs of her capital_."

Some time afterwards, M. T. despatched another vessel with a cargo also of the value of 200,000 francs, composed of the products of our native industry. This unfortunate ship was lost in a gale of wind after leaving the harbour, and all M. T. had to do was to make two short entries in his books, to this effect:--

"_Sundry goods debtors to X_, 200,000 francs, for purchases of different commodities despatched by the ship N.

"_Profit and loss debtors to sundry goods_, 200,000 francs, in consequence of _definitive and total loss_ of the cargo."

At the same time, the Customhouse books bore an entry of 200.000 francs in the list of _exportations_; and as there was no corresponding entry to make in the list of _importations_, it follows that M. Lestiboudois and the Chamber will see in this shipwreck _a clear and net profit_ for France of 200,000 francs.

There is still another inference to be deduced from this, which is, that according to the theory of the balance of trade, France has a very simple means of doubling her capital at any moment. It is enough to pass them through the Customhouse, and then pitch them into the sea. In this case the exports will represent the amount of her capital, the imports will be _nil_, and even impossible, and we shall gain all that the sea swallows up.

This is a joke, the protectionists will say. It is impossible' we could give utterance to such absurdities. You do give utterance to them, however, and, what is more, you act upon them, and impose them on your fellow-citizens to the utmost of your power.

The truth is, it would be necessary to take the balance of trade _backwards [au rebours]_, and calculate the national profits from foreign trade by the excess of imports over exports. This excess, after deducting costs, constitutes the real profit. But this theory, which is true, leads directly to free trade. I make you a present of it, gentlemen, as I do of all the theories in the preceding chapters. Exaggerate it as much as you please--it has nothing to fear from that test. Suppose, if that amuses you, that the foreigner inundates us with all sorts of useful commodities without asking anything in return, that our imports are _infinite_ and exports _nil_, I defy you to prove to me that we should be poorer on that account.