one of three possible cases. If, after the imposition of the duty, England requires so diminished a quantity of corn that its total value is exactly the same as before, the balance of trade would be undisturbed; the United States will gain the duty, England will lose it, and nothing more. If, again, the imposition of the duty occasions such a falling off in the demand that England requires a less pecuniary value than before, our exports will no longer pay for our imports; money must pass from the United States into England; and England's share of the advantage of the trade will be increased. By the change in the distribution of money, corn will fall in the United States, and therefore it will, of course, fall in England. Thus England will not pay the whole of the tax. From the same cause, iron will rise in England, and consequently in the United States. When this alteration of prices has so adjusted the demand that the corn and the iron again pay for one another, the result is that England has paid only a part of the tax, and the remainder of what has been received into our treasury has come indirectly out of the pockets of our own consumers of iron, who pay a higher price for that imported commodity in consequence of the tax on our exports, while at the same time they, in consequence of the efflux of money and the fall of prices, have smaller money incomes wherewith to pay for the iron at that advanced price.
It is not an impossible supposition that by taxing our exports we might not only gain nothing from the foreigner, the tax being paid out of our own pockets, but might even compel our own people to pay a second tax to the foreigner. Suppose, as before, that the demand of England for corn falls off so much on the imposition of the duty