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a close up of a piece of paper with writing on itan old document with a handwritten letter on it in black ink
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92 - David RICARDO (1772–1823). Letter from the author, London, 2…
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Estimate €1,000 - €1,500
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Description
David RICARDO (1772–1823). Letter from the author, London, 24 February 1823, to Francis Finch at West Bromwich near Birmingham; one and a half pages, quarto, address (address leaf doubled); in English. A very interesting letter on the establishment of factories abroad, its impact on capital, and on free trade. He addresses the question of establishing factories abroad, which, in his view, cannot be detrimental to England. Every mechanical innovation brings a general benefit rather than a partial one. If we can produce cheap cotton using machines, this enables foreign countries, with their silk, wine and lace, to obtain a greater quantity of cheap goods in exchange for their produce, in exactly the same way as it enables the English, with their wheat or cloth, to obtain a greater quantity in exchange. ‘The establishment of manufactories abroad cannot, I think, be injurious to us. Every discovery in machinery is a general and not a partial benefit. If we can produce cotton goods cheaply with the aid of machinery, this enables the foreigner, with his silk, wine and lace, to obtain a greater quantity of these cheap goods in exchange for his commodities, in exactly the same way as it enables an Englishman, with his corn or cloth, to obtain a greater quantity in exchange for his. ’ If, however, the factories are established with English capital, Great Britain will suffer a loss. Fewer workers will be employed in England, and income will be lower in this country, whilst taxation will weigh more heavily on the capital that remains at home. The best way to prevent capitalists from investing their money in other countries is to remove all restrictions on trade, to keep taxes low and to offer the surest protection for property. He regrets that the government restricts the export of machinery and believes that this would be one of the best branches of their trade. ‘If, however, factories abroad are to be established with British capital, Britain will suffer: fewer labourers will be employed in England, less revenue will be spent in that country, and taxation will bear more heavily on the capital that remains at home. Although I believe these are the consequences of a loss of capital, it would be unwise – and, even if wise, impossible – to prevent capitalists from taking their capital to other countries whenever they so wished. The only way to prevent this is to remove all restrictions on trade, to keep taxes low, and to provide the most secure protection for property. I deeply regret our Government’s misguided policy of imposing even the slightest restriction on the export of machinery; I believe that, were it permitted, it would become one of our finest branches of trade’…
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About the sale Letters and Autograph Manuscripts – Part I
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Auction time 10/13/2026 at 2:00 PM
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