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Front Page arrow Titles (by Subject) arrow 132.: ricardo to malthus1[Reply to 131.—Answered by 137] - The Works and Correspondence of David Ricardo, Vol. 6 Letters 1810-1815

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132.: ricardo to malthus1[Reply to 131.—Answered by 137] - David Ricardo, The Works and Correspondence of David Ricardo, Vol. 6 Letters 1810-1815 [1810]

Edition used:

The Works and Correspondence of David Ricardo, ed. Piero Sraffa with the Collaboration of M.H. Dobb (Indianapolis: Liberty Fund, 2005). Vol. 6 Letters 1810-1815.

Part of: The Works and Correspondence of David Ricardo, 11 vols (Sraffa ed.)

About Liberty Fund:

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132.

ricardo to malthus1
[Reply to 131.—Answered by 137]

My dear Sir

My letter2 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 28000000 or more.

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 Yrs.

David Ricardo

I ought to apologize for writing to you twice in one day.

[1 ]Addressed: ‘Revd. T R Malthus / East India College / Hertford’.

MS at Albury.—Letters to Malthus, XXXIX.

[2 ]Letter 130.