comparison with home
trade.

The foreign glut, in such case, reacts upon the privileged home and
colonial markets, no doubt affecting prices in some degree, and if not
always the rates of labour, at all events the sufficiency of employment,
which is scarcely less an evil. But the reaction presses with nothing like
the severity, which in a similar case, and to the same extent only, would
follow from a glut in the home privileged markets. The cause must be
sought in the general rule, that the inferior qualities of merchandise and
manufactures are for the most part the objects of exportation only.
Consequently, in case of a glut, or want of demand abroad, as such are not
suited by quality for home taste and consumption, the superabundance of
accumulated and unsaleable stock, with the depression of prices consequent,
affects comparatively in a slight degree only the value and vent of the
wares prepared expressly for home consumption. But a different and more
modified action takes place in case of over-production of the latter, or
upon a failure of demand, arising from whatever cause. For, being then
pressed upon the foreign market, the superior quality of the goods
commands a decided preference at once, and that preference ensures
comparatively higher rates of price in the midst of the piled up packages
of warehouse sweepings and goods, made, like Peter's razors, for special
sale abroad, which are vainly offered at prime or any cost. These and
other specialties escape, and not unaccountably, the view and the
calculation of the speculative economist, who is so often astounded to
find how a principle, or a theory, of unquestionable truth abstractedly,
and apparently of general application, comes practically to be controlled
by circumstances beyond his appreciation, or even to be negatived
altogether. An example or two in illustration, may render the question
more clearly to the economical reader; although taken from the cotton
trade, they are not the less true, generally, of all other branches of
home manufacturing industry. As we shall have to mention names, a period
long past is purposely selected; but although the parties, so far as
commercial pursuits, may be considered as no longer in existence, yet they
cannot fail to be well remembered. The former firm of Phillips and Lee of
Manchester, were extensive spinners of cotton yarn for exportation, and
extensive purchasers of other cotton yarns for exportation also; but for
h