WCP1609

[1]

Croydon

July 13^th. 1879

Dear Sir,

There is no doubt, as you say, That all money ultimately represents goods of some kind. ^{I do not deny this, but it is not to the point.} My argument was and is, that it ^money (as well as many other kinds of property) ^may represent ^{stored up goods, —} goods made ^{years on} generations or ^even centuries ago, ^{or goods made and consumed and ordered}[?] ^{in distant lands,} and that this ^{money representative of ancient or foreign} goods, the realised wealth of the country, may be exchanged for the goods now making in foreign countries, & that ^therefore do[?] lay us this supply ^store of wealth lasts, the goods of ours now being made by our manufacturers may be displaced foreign goods may come to us without a corresponding quantity of our goods (that is goods now making by our manufacturers) being taken in exchange. This ^{is the very essence of all my argument} You denied & I assented the possibility of ^it; and I think not one word that you have said since disproves it.

I am informed, that it is well known on the stock exchange that American and ^other foreign securities are now much less largely held in England than some years back; & this outflow of securities renders the slight influx of bullion ^gold, which is held ^{constantly addv[an]ced}[?] to show that our imports cannot exceed our exports in value, altogether illusory.

As to the last part of your letter, you deny, as Mr Lowe did, that protected foreign goods can undersell ours. I gave proof in my answer to Mr. Lowe that they do, & the reason why they do, — as in ^{a reason} well known to every manufacturer; & I gave the same reason in my first letter to you. Till those facts are shown to be incorrect & ^these reasons shown to be fallacious I need not repeat them*.

*See Chap. VI. of "Protection to Native Industry" by Sir Edw[ar]d Sullivan.¹