第10章

4。Thatthemanufacturingandcommercialcapital，inclusiveof

ships，doesnotaltogetheramounttomorethan2411/2millions，

andthereforetoonlyabout1/18oftheEnglishnationalwealth。

5。ThatthewholeEnglishagriculturalcapital，with3，311

millions，yieldsagrossincomeof539millions，consequentlyabout

16percent；whilemanufacturingandcommercialcapital，amounting

to218millions，givesagrossannualproductionof2591/2

millionsorof120percent。

Itmusthere，aboveallthings，benotedthatthe218millions

manufacturingcapital，withanannualproductionof2591/2

millions，constitutethechiefreasonwhytheEnglishagricultural

capitalcouldhaveattainedtotheenormousamountof3，311

millions，anditsannualproducetothesumof539millions。Byfar

thegreatestpartoftheagriculturalcapitalconsistsinthevalue

oflandandcattle。Manufactures，bydoublingandtreblingthe

populationofthecountry，byfurnishingthemeansforanimmense

foreigncommerce，fortheacquisitionandexplorationofanumber

ofcolonies，andforalargemercantilemarine，haveincreasedin

thesameproportionthedemandformeansofsubsistenceandraw

materials，haveaffordedtotheagriculturistatoncethemeansand

themotiveforsatisfyingthisincreaseddemand，haveincreasedthe

exchangeablevalueoftheseproducts，andthuscausedthe

proportionateincreaseintheamountandthesellingvalueofthe

rentofland，consequentlyofthelanditself。Werethese218

millionsofmanufacturingandcommercialcapitaldestroyed，we

shouldseenotmerelythe2591/2millionsmanufacturing

production，butalsothegreatestpartofthe3，311millions

agriculturalcapital，andconsequentlyofthe539millions

agriculturalproduction，disappear。TheEnglishnationalproduction

wouldnotmerelylose2591/2millions(thevalueofits

manufacturingproduction)，butthevalueoflandwoulddeclineto

thevaluewhichithasinPoland，i。e。tothetenthortwentieth

partofitspresentvalue。

Fromthisitfollowsthatallcapitalwhichisdevotedbythe

agriculturalnationinaprofitablemannertomanufactures，

increasesinthecourseoftimethevalueofthelandtenfold。

Experienceandstatisticseverywhereconfirmthisstatement。

Everywhereithasbeenseenthatinconsequenceofthe

establishmentofmanufacturesthevalueoflandandalsothatof

thestockofcapitalrapidlyincreases。Letanyonecomparethese

valuesinFrance(in1789andin1840)，inNorthAmerica(in1820

andin1830)，orinGermany(in1830andin1840)，howtheyhave

correspondedwithalessdevelopedoramorefullydeveloped

conditionofmanufactures，andhewillfindourobservation

everywhereconfirmed。

Thereasonforthisappearanceliesintheincreasedpowerof

productioninthenation，whichemanatesfromtheregulardivision

oflabourandfromthestrengthenedconfederationofthenational

powers，alsofromabetteruseofthementalandnaturalpowers

placedatthedisposalofthenation，andfromforeigncommerce。

Thesearetheverysamecausesandeffectswhichwemay

perceiveinrespecttoimprovedmeansoftransport；whichnot

merelyyieldinthemselvesarevenue，andthroughitareturnfor

thecapitalspentuponthem，butalsopowerfullypromotethe

developmentofmanufacturesandagriculture，wherebytheyincrease

inthecourseoftimethevalueofthelandedpropertywithintheir

districtstotenfoldthevalueoftheactualmaterialcapitalwhich

hasbeenemployedincreatingthem。Theagriculturist，in

comparisonwiththeundertakerofsuchworks(improvedmeansof

transport)，hasthegreatadvantageofbeingquitesureofhis

tenfoldgainonhisinvestedcapitalandofobtainingthisprofit

withoutmaltinganysacrifices，whilethecontractorfortheworks

muststakehiswholecapital。Thepositionoftheagriculturistis

equallyfavourableascomparedwiththatoftheerectorofnew

manufactories。

If，however，thiseffectofmanufacturesonagricultural

production，onrent，andthereforeonthevalueoflandedproperty，

issoconsiderableandadvantageousforallwhoareinterestedin

agriculture；how，then，canitbemaintainedthatprotective

measureswouldfavourmanufacturesmerelyatthecostofthe

agriculturists？

Thematerialprosperityofagriculturists，aswellasofall

otherprivatepersons，principallydependsonthepointthatthe

valueofwhattheyproduceshallexceedthevalueofwhatthey

consume。It，therefore，isnotsoimportanttothemthat

manufacturedgoodsshouldbecheap，asespeciallythatalarge

demandforvariousagriculturalproductsshouldexist，andthat

theseshouldbearahighvalueinexchange。Now，ifmeasuresof

protectionoperatesothattheagriculturistgainsmorebythe

improvementofthemarketforhisownproducethanhelosesbythe

increaseofthepricesofsuchmanufacturedgoodsasherequiresto

buy，hecannotrightlybedescribedasmakingasacrificeinfavour

ofthemanufacturer。Thiseffectis，however，alwaysobservablein

thecaseofallnationswhoarecapableofestablishinga

manufacturingpoweroftheirown，andintheircaseismost

apparentduringthefirstperiodoftheriseofthenative

manufacturingindustry；sincejustatthattimemostofthecapital

transferredtomanufacturingindustryisspentontheerectionof

dwellinghousesandmanufactories，theapplicationofwaterpower，

&c。，anexpenditurewhichchieflybenefitstheagriculturist。

Howevermuchinthebeginningtheadvantagesofthegreatersaleof

agriculturalproduceandofitsincreasedvalueoutweighsthe

disadvantageoftheincreasedpriceofmanufacturedgoods，somust

thisfavourableconditionalwaysincreasefurthertotheadvantage

oftheagriculturists，becausetheflourishingofthemanufactories

alwaystendsinthecourseoftimecontinuallymoreandmoreto

increasethepricesobtainableforagriculturalproduceandto

lessenthepricesofmanufacturedgoods。

Further，theprosperityoftheagriculturistandlanded

proprietorisespeciallydependentonthecircumstancethatthe

valueoftheinstrumentfromwhichhisincomeisderived，namely，

hislandedproperty，atleastmaintainsitsformerposition。This

isnotmerelythechiefconditionofhisprosperity，butfrequently

ofhisentireeconomicalexistence。Forinstance，itfrequently

happensthattheannualproductionoftheagriculturistexceedshis

consumption，andneverthelesshefindshimselfruined。Thisoccurs

ifwhilehislandedpropertyisencumberedwithmoneydebts，the

generalcreditbecomesfluctuating；ifononesidethedemandfor

moneycapitalexceedsthesupplyofit，andontheotherhandthe

supplyoflandexceedsthedemand。Insuchcasesageneral

withdrawalofmoneyloansandageneralofferoflandforsale

arises，andconsequentlylandbecomesalmostvalueless，andalarge

numberofthemostenterprising，active，andeconomicalland

cultivatorsareruined，notbecausetheirconsumptionhasexceeded

theirproduction，butbecausetheinstrumentoftheirproduction，

theirlandedproperty，haslostintheirhandsaconsiderable

portionofitsvalue，inconsequenceofcausesoverwhichtheyhad

nocontrol；further，becausetheircredithastherebybecome

destroyed；andfinally，becausetheamountofthemoneydebtswith

whichtheirlandedpropertyisencumberedisnolongerin

proportiontothemoneyvalueoftheirpossessions，whichhas

becomedepressedbythegeneralworthlessnessoflandedproperty。

SuchcriseshaveoccurredinGermanyandNorthAmericaduringthe

lastfiftyyearsmorethanonce，andinthismanneralarge

proportionoftheGermannobilityfindthemselvesnolongerin

possessionofpropertyorlandedestate，withouthavingclearly

perceivedthattheyreallyowethisfatetothepolicyadoptedby

theirbrothersinEngland，theTorieswhomtheyregardassowell

disposed。Theconditionoftheagriculturistandlandedproprietor

is，however，totallydifferentincountrieswheremanufactures

flourishvigorously。There，whiletheproductivecapabilitiesof

thelandandthepricesofproduceareincreased，henotmerely

gainstheamountbywhichthevalueofhisproductionexceedsthe

valueofhisconsumption；hegains，aslandedproprietor，notonly

anincreaseofannualrent，buttheamountofcapitalrepresented

bytheincreaseofrent。Hispropertydoublesandtreblesitselfin

value，notbecauseheworksmore，improveshisfieldsmore，or

savesmore，butbecausethevalueofhispropertyhasbeen

increasedinconsequenceoftheestablishmentofmanufactures。This

effectaffordstohimmeansandinducementforgreatermentaland

bodilyexertions，forimprovementofhisland，fortheincreaseof

hislivestock，andforgreatereconomy，notwithstandingincreased

consumption。Withtheincreaseinthevalueofhislandhiscredit

israised，andwithitthecapabilityofprocuringthematerial

capitalrequiredforhisimprovements。

AdamSmithpassesovertheseconditionsoftheexchangeable

valueoflandinsilence。J。B。Say，onthecontrary，believesthat

theexchangeablevalueoflandisoflittleimportance，inasmuch

as，whetheritsvaluebehighorlow，italwaysservesequallywell

forproduction。ItissadtoreadfromanauthorwhomhisGerman

translatorsregardasauniversalnationalauthority，such

fundamentallywrongviewsaboutamatterwhichaffectssodeeply

theprosperityofnations。We，onthecontrary，believeit

essentialtomaintainthatthereisnosurertestofnational

prosperitythantherisingandfallingofthevalueoftheland，

andthatfluctuationsandcrisesinthataretobeclassedamong

themostruinousofallplaguesthatcanbefallacountry。

Intothiserroneousviewtheschoolhasalsobeenledbyits

predilectionforthetheoryoffreetrade(asitdesiresthelatter

termtobeunderstood)。Fornowherearefluctuationsandcrisesin

thevalueandpriceoflandgreaterthaninthosepurely

agriculturalnationswhichareinunrestrictedcommercial

intercoursewithrichandpowerfulmanufacturingandcommercial

nations。

Foreigncommercealso，itistrue，actsontheincreaseofrent

andthevalueofland，butitdoessoincomparablylessdecidedly，

uniformly，andpermanently，thantheestablishmentofhome

manufactures，thecontinuousregularincreaseofmanufacturing

production，andtheexchangeofhomemanufacturingproductsfor

homeagriculturalproducts。

Solongastheagriculturalnationstillpossessesalarge

quantityofuncultivatedorbadlycultivatedland，solongasit

producesstaplearticleswhicharereadilytakenbythericher

manufacturingnationinexchangeformanufacturedgoods，solongas

thesearticlesareeasyoftransport，solongalsoasthedemand

forthemislastingandcapableofannualincreaseatarate

correspondingwiththegrowthoftheproductivepowersofthe

agriculturalnation，andsolongasitisnotinterruptedbywars

orforeigntariffregulations，undersuchcircumstancesforeign

commercehasapowerfuleffectontheincreaseofrentsandonthe

exchangeablevalueofland。Butassoonasanyoneofthese

conditionsfailsorceasestooperate，foreigncommercemaybecome

thecauseofnationalstagnation，nayfrequentlyofconsiderable

andlong-continuedretrogression。

Theficklenessofforeigndemandhasthemostbanefuleffectof

allinthisrespect，ifinconsequenceofwars，failureofcrops，

diminutionofimportationfromotherparts，orowingtoanyother

circumstancesandoccurrences，themanufacturingnationrequires

largerquantitiesespeciallyofthenecessariesoflifeorraw

materials，orofthespecialstaplearticlesreferredto，andthen

ifthisdemandagaintoagreatextentceases，inconsequenceof

therestorationofpeace，ofrichharvests，oflargerimportation

fromothercountries，orinconsequenceofpoliticalmeasures。If

thedemandlastsmerelyforashorttime，somebenefitmayresult

fromittotheagriculturalnation；butifitlastforyearsora

seriesofyearsthenallthecircumstancesoftheagricultural

nation，thescaleofexpenditureofallprivateestablishments，

willhavebecomeregulatedbyit。Theproducerbecomesaccustomed

toacertainscaleofconsumption；andcertainenjoyments，which

underothercircumstanceshewouldhaveregardedasluxuries，

becomenecessariestohim。Relyingontheincreasedyieldandvalue

ofhislandedproperty，heundertakesimprovementsincultivation，

inbuildings，andmakespurchaseswhichotherwisehewouldnever

havedone。Purchasesandsales，contractsoflettingland，loans，

areconcludedaccordingtothescaleofincreasedrentsandvalues。

TheStateitselfdoesnothesitatetoincreaseitsexpensesin

accordancewiththeincreasedprosperityofprivatepersons。Butif

thisdemandafterwardssuddenlyceases，disproportionbetween

productionandconsumptionfollows；disproportionbetweenthe

decreasedvaluesoflandandthemoneyencumbrancesuponitwhich

continueundiminishedinamount；disproportionbetweenthemoney

rentpayableundertheleases，andthemoneyproduceoftheland

whichhasbeentakenonlease；disproportionbetweennational

incomeandnationalexpenditure；andinconsequenceofthese

disproportions，bankruptcy，embarrassment，discouragement，

retrogressionintheeconomicalaswellasinthementaland

politicaldevelopmentofthenation。Agriculturalprosperitywould

underthesecircumstancesactlikethestimulantofopiumorstrong

drink，stimulatingmerelyforamoment，butweakeningforawhole

lifetime。ItwouldbelikeFranklin\'sflashoflightning，whichfor

amomentdisplayedtheobjectsinashininglight，butonlyto

throwthembackintodeeperdarkness。

Aperiodoftemporaryandpassingprosperityinagricultureis

afargreatermisfortunethanuniformandlastingpoverty。If

prosperityistobringrealbenefittoindividualsandnations，it

mustbecontinuous。It，however，becomescontinuousonlyincaseit

increasesgradually，andincasethenationpossessesguarantees

forthisincreaseandforitsduration。Alowervalueoflandis

incomparablybetterthanfluctuationsinitsvalue；itisonlya

gradualbutsteadyincreaseinthatvaluethataffordstothe

nationlastingprosperity。Andonlybythepossessionofa

manufacturingpoweroftheirown，canwell-developednations

possessanyguaranteeforthesteadyandpermanentincreaseofthat

value。

Tohowverysmallanextentclearideasprevailastothe

effectofahomemanufacturingpowerontherentandvalueofland

incomparisonwiththeeffectwhichforeigntradehasonthem，is

shownmostplainlybythecircumstancethattheproprietorsof

vineyardsinFrancestillalwaysbelievethattheyareinjuriously

affectedbytheFrenchsystemofprotection，anddemandthe

greatestpossiblefreedomofcommercewithEnglandinhopesof

therebyincreasingtheirrents。

DrBowring，inhisreportofthecommercialrelationsexisting

betweenEnglandandFrance，thefundamentaltendencyofwhichisto

showthebenefittoFrancewhichalargerimportationofEnglish

fabricsandaconsequentlyincreasingexportationofFrenchwines

wouldoccasion，hasadducedfactsfromwhichthemoststriking

proofagainsthisownargumentcanbebrought。DrBowringquotes

theimportationofFrenchwinesintotheNetherlands(2，515，193

gallons，1829)againsttheannualimportationintoEngland(431，509

gallons)toprovehowgreatlythesaleofFrenchwinesinEngland

couldbeincreasedbyfreercommercialinterchangebetweenthetwo

countries。

Nowsupposing(althoughitismorethanimprobablethatthe

saleofFrenchwinesinEnglandwouldnotfindobstaclesinthe

predilectionexistingthereforspirituousliquors，forstrong

beer，andforthestrongandcheapwinesofPortugal，Spain，

Sicily，Teneriffe，Madeira，andtheCape)——supposingthatEngland

reallywastoextendherconsumptionofFrenchwinestothesame

proportionasthatoftheNetherlands，shewouldcertainly

(calculatingaccordingtoherpopulation)beabletoincreaseher

consumptiontofiveorsixmilliongallons(i。e。tofromtento

fifteenfoldherpresentamount)；andfromasuperficialpointof

viewthiscertainlyappearstopromisegreatadvantagetoFrance，

andtotheFrenchvineyardproprietors。

If，however，weinvestigatethismattertothebottom，we

obtainanotherresult。Byasmuchfreedomoftradeasispossible——

wewillnotsaycompletefreedomoftrade，althoughthelatter

wouldhavetobeacceptedaccordingtotheprincipleenunciated，

andtoBowring\'sarguments——itcanscarcelybedoubtedthatthe

EnglishwoulddrawtothemselvesalargepartoftheFrenchmarket

formanufacturedgoods(especiallyasregardsthemanufacturesof

woollens，cotton，linen，iron，andpottery)。Onthemostmoderate

estimatewemustassume，thatinconsequenceofthisdecreased

Frenchmanufacturingproductiononemillionfewerinhabitantswould

liveintheFrenchtowns，andthatonemillionfewerpersonswould

beemployedinagricultureforthepurposeofsupplyingthe

citizensofthosetownswithrawmaterialandnecessariesoflife。

Now，DrBowringhimselfestimatestheconsumptionofthecountry

populationinFranceat161/2gallonsperhead，andthatofthe

townpopulationatdoublethatquantity，or33gallonsperhead。

Thusinconsequenceofthediminutionofthehomemanufacturing

powereffectedbyfreetrade，theinternalconsumptionofwines

woulddecreaseby50milliongallons，whiletheexportationofwine

couldonlyincreaseby5or6milliongallons。Sucharesultcould

scarcelybetothespecialadvantageoftheFrenchproprietorsof

vineyards，sincetheinternaldemandforwineswouldnecessarily

suffertentimesmorethantheexternaldemandcouldpossiblygain。

Inoneword：itisevidentasrespectstheproductionofwine，

asalsointhatofmeat，ofcorn，andofrawmaterialsand

provisionsgenerally，thatinthecaseofagreatnationwell

fittedtoestablishamanufacturingpowerofitsown，theinternal

manufacturingproductionoccasionstentotwentytimesmoredemand

fortheagriculturalproductsoftemperateclimates，consequently

actstentotwentytimesmoreeffectuallyontheincreaseofthe

rentandexchangeablevalueofrealestate，thanthemost

flourishingexportationofsuchproductscando。Themost

convincingproofofthismayalsobeseenintheamountofrents

andtheexchangeablevalueoflandnearlargetowns，ascompared

withtheiramountandvalueindistantprovinces，eventhoughthese

latterareconnectedwiththecapitalbygoodroadsand

conveniencesforcommercialintercourse。

Thedoctrineofrentcaneitherbeconsideredfromthepointof

viewofvaluesorfromthepointofviewofproductivepowers；it

canfurtherbeconsideredwithrespectmerelytoprivaterelations，

namely，therelationsbetweenlandedproprietor，farmer，and

labourer，orwithespecialregardtothesocialandnational

relationsandconditions。Theschoolhastakenupthisdoctrine

chieflyfromthesolepointofviewofprivateeconomy。Sofaras

weknow，forinstance，nothinghasbeenadducedbyittoshowhow

theconsumptionoftherentsofthenationisthemoreadvantageous

themoreittakesplaceintheproximityoftheplacewhenceitis

derived，buthowneverthelessinthevariousStatesthat

consumptiontakesplaceprincipallyattheseatofthesovereign

(e。g。inabsolutemonarchiesmostlyinthenationalmetropolis)，

farawayfromtheprovinceswhereitisproduced，andthereforein

amannertheleastadvantageoustoagriculture，tothemostuseful

industries，andtothedevelopmentofthementalpowersofthe

nation。Wherethelandowningaristocracypossessnorightsandno

politicalinfluenceunlesstheyliveattheCourt，oroccupy

officesofState，andwhereallpublicpowerandinfluenceis

centralisedinthenationalmetropolis，landownersareattractedto

thatcentralpoint，wherealmostexclusivelytheycanfindthe

meansofsatisfyingtheirambition，andopportunitiesforspending

theincomeoftheirlandedpropertyinapleasantmanner；andthe

morethatmostlandownersgetaccustomedtoliveinthecapital，

andthelessthataresidenceintheprovincesofferstoeach

individualopportunitiesforsocialintercourseandformentaland

materialenjoymentsofamorerefinedcharacter，themorewill

provincialliferepelhimandthemetropolisattracthim。The

provincetherebylosesandthemetropolisgainsalmostallthose

meansofmentalimprovementwhichresultfromthespendingof

rents，especiallythosemanufacturesandmentalproducerswhich

wouldhavebeenmaintainedbytherent。Themetropolisunderthose

circumstances，indeed，appearsextremelyattractivebecauseit

unitesinitselfallthetalentsoftheintellectualworkersand

thegreatestpartofthematerialtradeswhichproducearticlesof

luxury。Buttheprovincesaretherebydeprivedofthosemental

powers，ofthosematerialmeans，andespeciallyofthose

industries，whichchieflyenabletheagriculturisttoundertake

agriculturalimprovements，andstimulatehimtoeffectthem。

Inthesecircumstancesliestoagreatextentthereasonwhyin

France，especiallyunderabsolutemonarchy，alongsideofa

metropolissurpassinginintellectandsplendouralltownsofthe

Europeancontinent，agriculturemadebutslightprogress，andthe

provincesweredeficientinmentalcultureandinuseful

industries。Butthemorethatthelandedaristocracygainsin

independenceoftheCourt，andininfluenceinlegislationand

administration，themorethattherepresentativesystemandthe

systemofadministrationgrantstothetownsandprovincesthe

rightofadministeringtheirownlocalaffairsandoftakingpart

inthelegislationandgovernmentoftheState，andconsequently

themorethatrespectandinfluencecanbeattainedinthe

provincesandbylivingthere，somuchthemorewillthelanded

aristocracy，andtheeducatedandwell-to-docitizens，bedrawnto

thoselocalitiesfromwhichtheyderivedtheirrents，thegreater

alsowillbetheinfluenceoftheexpenditureofthoserentsonthe

developmentofthementalpowersandsocialinstitutions，onthe

promotionofagriculture，andonthedevelopmentofthose

industrieswhichareusefultothegreatmassesofthepeoplein

theprovince。

TheeconomicalconditionsofEnglandaffordproofofthis

observation。ThefactthattheEnglishlandedproprietorlivesfor

thegreatestportionoftheyearonhisestates，promotesin

manifoldwaystheimprovementofEnglishagriculture：directly，

becausetheresidentlandownerdevotesaportionofhisrentto

undertakingonhisownaccountimprovementsinagriculture，orto

supportingsuchimprovementswhenundertakenbyhistenants；

indirectly，becausehisownconsumptiontendstosupportthe

manufacturesandagenciesofmentalimprovementandCivilisation

existingintheneighbourhood。Fromthesecircumstancesitcan

furtherpartlybeexplainedwhyinGermanyandinSwitzerland，in

spiteofthewantoflargetowns，ofimportantmeansoftransport，

andofnationalinstitutions，agricultureandCivilisationin

generalareinamuchhigherconditionthaninFrance。

ButthegreaterrorintowhichinthismatterAdamSmithand

hisschoolhavefallenisthatwhichwehavealreadybefore

indicated，butwhichcanbeheremoreclearlyshown，viz。thathe

didnotclearlyrecognisetheinfluenceofmanufacturesonthe

increaseofrents，onthemarketvalueoflandedpropertyitself，

andontheagriculturalcapital，anddidnotstatethisbyany

meanstoitsfullextent，but，onthecontrary，hasdrawna

comparisonbetweenagricultureandmanufacturesinsuchamanner

thathewouldtoamakeitappearthatagricultureisfarmore

valuableandimportantnationthanmanufactures，andthatthe

prosperityresultingfromitisfarmorelastingthanthe

prosperityresultingfromthelatter。AdamSmithinsodoingmerely

sanctionedtheerroneousviewofthephysiocraticschool，although

inasomewhatmodifiedmanner。Hewasevidentlymisledbythe

circumstancethat——aswehavealreadydemonstratedbythe

statisticalconditionsofEngland——thematerialagricultural

capitalis(evenintherichestmanufacturingcountry)tento

twentytimesmoreimportantthanthematerialmanufacturing

capital；infact，eventheannualagriculturalproductiOnfar

exceedsinvaluethetotalmanufacturingcapital。Thesame

circumstancemayalsohaveinducedthephysiocraticschoolto

over-estimatethevalueofagricultureincomparisonwith

manufactures。Superficiallyconsidered，itcertainlyappearsasif

agricultureenrichesacountrytentimesmore，andconsequently

deservestentimesmoreconsideration，andistentimesmore

importanttotheStatethanmanufactures。This，however，ismerely

apparent。Ifweinvestigatethecausesofthisagricultural

prosperitytotheirbasis，wefindthemprincipallyinthe

existenceofmanufactures。Itisthose218millionsof

manufacturingcapitalwhichhaveprincipallycalledintoexistence

those3，311millionsofagriculturalcapital。Thesame

considerationholdsgoodasrespectsmeansoftransport；itisthe

moneyexpendedinconstructingthemwhichhasmadethoselands

whicharewithinthereachofthecanalsmorevaluable。Ifthe

meansoftransportalongacanalbedestroyed，wemayusethewater

whichhasbeenhithertoemployedfortransport，forirrigating

meadows——apparently，therefore，forincreasingagricultural

capitalandagriculturalrents，&c。；butevensupposingthatby

suchaprocessthevalueofthesemeadowsrosetomillions，this

alteration，apparentlyprofitabletoagriculture，willnevertheless

lowerthetotalvalueofthelandedpropertywhichiswithinreach

ofthecanaltentimesmore。

Consideredfromthispointofview，fromthecircumstancethat

thetotalmanufacturingcapitalofacountryissosmallin

comparisonwithitstotalagriculturalcapital，conclusionsmustbe

drawnofatotallydifferentcharacterfromthosewhichthepresent

andprecedingschoolhavedrawnfromit。Themaintenanceand

augmentationofthemanufacturingpowerseemnow，eventothe

agriculturist，themorevaluable，thelesscapitalascomparedwith

agricultureitrequirestoabsorbinitselfandtoputinto

circulation。Yes，itmustnowbecomeevidenttotheagriculturist，

andespeciallytotherent-ownersandthelandedproprietorsofa

country，thatitwouldbetotheirinteresttomaintainanddevelop

aninternalmanufacturingpower，evenhadtheytoprocurethe

requisitecapitalwithouthopeofdirectrecompense；justasitis

totheirinteresttoconstructcanals，railways，androadsevenif

theseundertakingsyieldnorealnettprofit。Letusapplythe

foregoingconsiderationstothoseindustrieswhichlienearestand

aremostnecessarytoagriculture，e。g。flourmills；andtherewill

benoroomfordoubtastothecorrectnessofourviews。Compare，

ontheonehand，thevalueoflandedpropertyandrentina

districtwhereamillisnotwithinreachoftheagriculturist，

withtheirvalueinthosedistrictswherethisindustryiscarried

onintheirverymidst，andweshallfindthatalreadythissingle

industryhasaconsiderableeffectonthevalueoflandandon

rent；thatthere，undersimilarconditionsofnaturalfertility，

thetotalvalueofthelandhasnotmerelyincreasedtodouble，but

totenortwentytimesmorethanthecostoferectingthemill

amountedto；andthatthelandedproprietorswouldhaveobtained

considerableadvantagebytheerectionofthemill，evenifthey

hadbuiltitattheircommonexpenseandpresentedittothe

miller。Thelattercircumstance，infact，takesplaceeverydayin

thebackwoodsofNorthAmerica，where，incaseswhenanindividual

hasnotadequatecapitaltoerectsuchworksentirelyathisown

expense，thelandownergladlyhelpshimbycontributinglabour，by

teamwork，freegiftsoftimber，&c。Infact，thesamethingalso

occurred，althoughinanotherform，incountriesofearlier

civilisation；heremustundoubtedlybesoughttheoriginofmany

ancientfeudal\'commonmill\'rights。

Asitisinthecaseofthecornmill，soisitinthoseof

saw，oil，andplastermills，soisitinthatofironworks；

everywhereitcanbeprovedthattherentandthevalueoflanded

propertyriseinproportionasthepropertyliesnearertothese

industries，andespeciallyaccordingastheyareincloserorless

closecommercialrelationswithagriculture。

Andwhyshouldthisnotbethecasewithwoollen，flax，hemp，

paper，andcottonmills？Whynotwithallmanufacturingindustries？

Wesee，atleast，everywherethatrentandvalueoflandedproperty

riseinexactlythesameproportionwiththeproximityofthat

propertytothetown，andwiththedegreeinwhichthetownis

populousandindustrious。Ifinsuchcomparativelysmalldistricts

wecalculatethevalueofthelandedpropertyandthecapital

expendedthereon，and，ontheotherhand，thevalueofthecapital

employedinvariousindustries，andcomparetheirtotalamount，we

shallfindeverywherethattheformerisatleasttentimeslarger

thanthelatter。Butitwouldbefollytoconcludefromthisthat

anationobtainsgreateradvantagesbyinvestingitsmaterial

capitalinagriculturethaninmanufactures，andthattheformeris

initselfmorefavourabletotheaugmentationofcapitalthanthe

latter。Theincreaseofthematerialagriculturalcapitaldepends

forthemostpartontheincreaseofthematerialmanufacturing

capital；andnationswhichdonotrecognisethistruth，however

muchtheymaybefavouredbynatureinagriculture，willnotonly

notprogress，butwillretrogradeinwealth，population，culture，

andpower。

Wesee，nevertheless，howtheproprietorsofrentandoflanded

propertynotunfrequentlyregardthosefiscalandpolitical

regulationswhichaimattheestablishmentofanative

manufacturingpowerasprivilegeswhichservemerelytoenrichthe

manufacturers，theburdenofwhichthey(thelandedinterest)have

exclusivelytobear。They，whoatthebeginningoftheir

agriculturaloperationssoclearlyperceivedwhatgreatadvantages

theymightobtainifacornmill，asawmill，oranironworkwere

establishedintheirneighbourhood，thattheythemselvessubmitted

tothegreatestsacrificesinordertocontributetowardsthe

erectionofsuchworks，cannolonger，whentheirinterestsas

agriculturistshavesomewhatimproved，comprehendwhatimmense

advantagesthetotalagriculturalinterestofthecountrywould

derivefromaperfectlydevelopednationalindustryofitsown，and

howitsownadvantagedemandsthatitshouldsubmittothose

sacrificeswithoutwhichthisobjectcannotbeattained。It

thereforehappens，that，onlyinafewandonlyinvery

well-educatednations，themindofeachseparatelandedproprietor，

thoughitisgenerallykeenlyenoughalivetothoseinterestswhich

liecloseathand，issagaciousenoughtoappreciatethosegreater

oneswhicharemanifesttoamoreextendedview。

Itmustnot，moreover，beforgottenthatthepopulartheoryhas

materiallycontributedtoconfusetheopinionsoflanded

proprietors。SmithandSayendeavouredeverywheretorepresentthe

exertionsofmanufacturerstoobtainmeasuresofprotectionas

inspirationsofmereself-interest，andtopraise，onthecontrary，

thegenerosityanddisinterestednessofthelandedproprietors，who

arefarfromclaiminganysuchmeasuresforthemselves。Itappears，

however，thatthelandedproprietorshavemerelybecomemindfulof

andbeenstimulatedtothevirtueofdisinterestedness，whichisso

highlyattributedtothem，inordertoridthemselvesofit。Forin

thegreatestnumberof，andinthemostimportant，manufacturing

states，theselandownershavealsorecentlydemandedandobtained

measuresofprotection，although(aswehaveshowninanother

place)itistotheirowngreatestinjury。Ifthelanded

proprietorsformerlymadesacrificestoestablishanational

manufacturingpoweroftheirown，theydidwhattheagriculturist

inacountryplacedoeswhenhemakessacrificesinorderthata

cornmilloranironforgemaybeestablishedinhisvicinity。If

thelandedproprietorsnowrequireprotectionalsofortheir

agriculture，theydowhatthoseformerlandedproprietorswould

havedoneif，afterthemillhasbeenerectedbytheiraid，they

requiredthemillertohelpincultivatingtheirfields。Without

doubtthatwouldbeafoolishdemand。Agriculturecanonly

progress，therentandvalueoflandcanonlyincrease，inthe

ratioinwhichmanufacturesandcommerceflourish；andmanufactures

cannotflourishiftheimportationofrawmaterialsandprovisions

isrestricted。Thisthemanufacturerseverywherefelt。Forthe

fact，however，thatthelandedproprietorsnotwithstandingobtained

measuresofprotectioninmostlargestates，thereisadouble

reason。Firstly，instateshavingrepresentativegovernment，the

landowner\'sinfluenceisparamountinlegislation，andthe

manufacturersdidnotventuretoopposethemselvesperseveringlyto

thefoolishdemandofthelandowners，fearinglesttheymight

therebyinclinethelattertofavourtheprinciplesoffreetrade；

theypreferredtoagreewiththelandedproprietors。

Itwastheninsinuatedbytheschooltothelandedproprietors

thatitisjustasfoolishtoestablishmanufacturesbyartificial

meansasitwouldbetoproducewineincoldclimatesin

greenhouses；thatmanufactureswouldoriginateinthenatural

courseofthingsoftheirownaccord；thatagricultureaffords

incomparablymoreopportunityfortheincreaseofcapitalthan

manufactures；thatthecapitalofthenationisnottobeaugmented

byartificialmeasures；thatlawsandStateregulationscanonly

induceaconditionofthingslessfavourabletotheaugmentationof

wealth。Finally，wheretheadmissioncouldnotbeavoidedthat

manufactureshadaninfluenceoveragriculture，itwassoughtat

leasttorepresentthatinfluencetobeaslittleandasuncertain

aspossible。Inanycase(itwassaid)ifmanufactureshadan

influenceoveragriculture，atleasteverythingisinjuriousto

agriculturethatisinjurioustomanufactures，andaccordingly

manufacturesalsohadaninfluenceontheincreaseoftherentof

land，butmerelyanindirectone。But，ontheotherhand，the

increaseofpopulationandofcattle，theimprovementsin

agriculture，theperfectionofthemeansoftransport，&c。hada

directinfluenceontheincreaseofrent。Thecaseisthesamehere

inreferencetothisdistinctionbetweendirectandindirect

influenceasonmanyotherpointswheretheschooldrawsthis

distinction(e。g。inrespectoftheresultsofmentalculture)，and

herealsoistheexamplealreadymentionedbyusapplicable；itis

likethefruitofthetree，whichclearly(inthesenseofthe

school)isanindirectresult，inasmuchasitgrowsonthetwig，

whichagainisafruitofthebranch，thisagainisafruitofthe

trunk，andthelatterafruitoftheroot，whichaloneisadirect

productofthesoil。Orwoulditnotbejustassophisticalto

speakofthepopulation，thestockofcattle，themeansof

transport，&c。asdirectcauses；butofmanufactures，onthe

contrary，asanindirectcauseoftheaugmentationofrents，while，

nevertheless，one\'sveryeyesightteachesoneineverylarge

manufacturingcountrythatmanufacturesthemselvesareachief

causeoftheaugmentationofpopulation，ofthestockofcattle，

andofmeansoftransport，&c。？Andwoulditbelogicalandjustto

co-ordinatetheseeffectsofmanufactureswiththeircause——in

fact，toputtheseresultsofmanufacturesattheheadasmain

causes，andtoputthemanufacturesthemselvesasanindirect

(consequently，almostasasecondary)causebehindtheformer？And

whatelsecanhaveinducedsodeeplyinvestigatingageniusasAdam

Smithtomakeuseofanargumentsopervertedandsolittlein

accordancewiththeactualnatureofthings，thanadesiretoput

especiallyintotheshademanufactures，andtheirinfluenceonthe

prosperityandthepowerofthenation，andontheaugmentationof

therentandthevalueoftheland？Andfromwhatothermotivecan

thishavetakenplacethanawishtoavoidexplanationswhose

resultswouldspeaktooloudlyinfavourofthesystemof

protection？Theschoolhasbeenespeciallyunfortunatesincethe

timeofAdamSmithinitsinvestigationsastothenatureofrent。

Ricardo，andafterhimMill，M\'Culloch，andothers，areofopinion

thatrentispaidonaccountofthenaturalproductivefertility

inherentinthelanditself。Ricardohasbasedawholesystemon

thisnotion。IfhehadmadeanexcursiontoCanada，hewouldhave

beenabletomakeobservationsthereineveryvalley，onevery

hill，whichwouldhaveconvincedhimthathistheoryisbasedon

sand。Ashe，however，onlytookintoaccountthecircumstancesof

England，hefellintotheerroneousideathattheseEnglishfields

andmeadowsforwhosepretendednaturalproductivecapabilitysuch

handsomerentsarenowpaid，haveatalltimesbeenthesamefields

andmeadows。Theoriginalnaturalproductivecapabilityoflandis

evidentlysounimportant，andaffordstothepersonusingitso

smallanexcessofproducts，thattherentderivablefromitalone

isnotworthmentioning。AllCanadainitsoriginalstate

(inhabitedmerelybyhunters)wouldyieldinmeatandskins

scarcelyenoughincometopaythesalaryofasingleOxonian

professorofpoliticaleconomy。Thenaturalproductivecapability

ofthesoilinMaltaconsistsofrocks，whichwouldscarcelyhave

yieldedarentatanytime。Ifwefollowupwiththemind\'seyethe

courseofthecivilisationofwholenations，andoftheir

conversionfromtheconditionofhunterstothepastoralcondition，

andfromthistothatofagriculturists，&c。，wemayeasily

convinceourselvesthattherenteverywherewasoriginallynil，and

thatitroseeverywherewiththeprogressofcivilisation，of

population，andwiththeincreaseofmentalandmaterialcapital。

Bycomparingthemereagriculturalnationwiththeagricultural，

manufacturing，andcommercialnation，itwillbeseenthatinthe

lattertwentytimesmorepeopleliveonrentsthanintheformer。

AccordingtoMarshal\'sstatisticsofGreatbritain，forexample，in

EnglandandScotland16，537，398humanbeingswerelivingin1831，

amongwhomwere1，116，398rentiers。Wecouldscarcelyfindin

Polandonanequalspaceoflandthetwentiethpartofthisnumber。

Ifwedescendfromgeneralstoparticularsandinvestigatethe

originandcauseoftherentalofseparateestates，wefind

everywherethatitistheresultofaproductivecapabilitywhich

hasbeenbestowedonitnotspontaneouslybynature，butchiefly

(directlyorindirectly)throughthementalandmateriallabourand

capitalemployedthereonandthroughthedevelopmentofsociety。We

see，indeed，howpiecesoflandyieldrentswhichthehandofmen

hasneverstirredbycultivation，as，forinstance，quarries，sand

pits，pasturegrounds；butthisrentismerelytheeffectofthe

increaseofculture，capital，andpopulationinthevicinity。We

see，ontheotherhand，thatthosepiecesoflandbringmostrent

whosenaturalproductivecapabilityhasbeentotallydestroyed，and

whichservefornootherusethanformentoeatanddrink，sit，

sleep，orwalk，work，orenjoythemselves，teachorbetaughtupon，

viz。buildingsites。

Thebasisofrentistheexclusivebenefitoradvantagewhich

thegroundyieldstothatindividualatwhoseexclusivedisposalit

isplaced，andthegreatnessofthisbenefitisdetermined

especiallyaccordingtotheamountofavailablementalandmaterial

capitalinthecommunityinwhichheisplaced，andalsoaccording

totheopportunitywhichthespecialsituationandpeculiar

characterofthepropertyandtheutilisationofcapitalpreviously

investedthereinaffordstothepersonexclusivelypossessingthe

propertyforobtainingmaterialvalues，orforsatisfyingmental

andbodilyrequirementsandenjoyments。

Rentistheinterestofacapitalwhichisfixedtoanatural

fund，orwhichisacapitalisednaturalfund。Theterritory，

however，ofthatnationwhichhasmerelycapitalisedthenatural

fundsdevotedtoagriculture，andwhichdoessointhatimperfect

mannerwhichisthecaseinmereagriculture，yieldsincomparably

lessrentthantheterritoryofthatnationwhichcombines

agriculturalandmanufacturingindustryonitsterritory。The

rentiersofsuchacountrylivemostlyinthesamenationwhich

suppliesthemanufacturedgoods。Butwhenthenationwhichisfar

advancedinagricultureandpopulationestablishesamanufacturing

industryofitsown，itcapitalises(aswehavealreadyprovedin

aformerchapter)notmerelythosepowersofnaturewhichare

speciallyserviceableformanufacturesandwerehitherto

unemployed，butalsothegreatestpartofthemanufacturingpowers

servingforagriculture。Theincreaseofrentinsuchanation，

therefore，infinitelyexceedstheinterestofthematerialcapital

requiredtodevelopthemanufacturingpower。

NOTES：

1。GeneralStatisticsoftheBritishEmpireLondon，1836。

Chapter21

TheManufacturingPowerandCommerce

Wehavehithertomerelyspokenoftherelationsbetween

agricultureandmanufactures，becausetheyformthefundamental

ingredientsofthenationalproduction，andbecause，before

obtainingaclearviewoftheirmutualrelations，itisimpossible

tocomprehendcorrectlytheactualfunctionandpositionof

commerce。Commerceisalsocertainlyproductive(astheschool

maintains)；butitissoinquiteadifferentmannerfrom

agricultureandmanufactures。Theselatteractuallyproducegoods，

commerceonlybringsabouttheexchangeofthegoodsbetween

agriculturistsandmanufacturers，betweenproducersandconsumers。

Fromthisitfollowsthatcommercemustberegulatedaccordingto

theinterestsandwantsofagricultureandmanufactures，notvice

vers？

Buttheschoolhasexactlyreversedthislastdictumby

adoptingasafavouriteexpressionthesayingofoldGourney，

\'Laissezfaire，laissezpasser，\'anexpressionwhichsoundsnoless

agreeablytorobbers，cheats，andthievesthantothemerchant，and

isonthataccountratherdoubtfulasamaxim。Thisperversityof

surrenderingtheinterestsofmanufacturesandagriculturetothe

demandsofcommerce，withoutreservation，isanaturalconsequence

ofthattheorywhicheverywheremerelytakesintoconsideration

presentvalues，butnowherethepowersthatproducethem，and

regardsthewholeworldasbutoneindivisibierepublicof

merchants。Theschooldoesnotdiscernthatthemerchantmaybe

accomplishinghispurpose(viz。gainofvaluesbyexchange)atthe

expenseoftheagriculturistsandmanufacturers，attheexpenseof

thenation\'sproductivepowers，andindeedofitsindependence。It

isallthesametohim；andaccordingtothecharacterofhis

businessandoccupation，heneednottroublehimselfmuch

respectingthemannerinwhichthegoodsimportedorexportedby

himactonthemorality，theprosperity，orthepowerofthe

nation。Heimportspoisonsasreadilyasmedicines。Heenervates

wholenationsthroughopiumandspirituousliquors。Whetherheby

hisimportationsandsmugglingsbringsoccupationandsustenanceto

hundredsofthousands，orwhethertheyaretherebyreducedto

beggary，doesnotsignifytohimasamanofbusiness，ifonlyhis

ownbalanceisincreasedthereby。Thenifthosewhohavebeen

reducedtowantbreadseektoescapethemiseryintheirfatherland

byemigrating，hecanstillobtainprofitbythebusinessof

arrangingtheiremigration。Inthetimeofwarheprovidesthe

enemywitharmsandammunition。Hewould，ifitwerepossible，sell

fieldsandmeadowstoforeigncountries，andwhenhehadsoldthe

lastbitoflandwouldplacehimselfonboardhisshipandexport

himself。

Itisthereforeevidentthattheinterestofindividual

merchantsandtheinterestofthecommerceofawholenationare

widelydifferentthings。InthissenseMontesquieuhaswellsaid，

\'IftheStateimposesrestrictionsontheindividualmerchant，it

doessointheinterestofcommerce，andhistradeisnowheremore

restrictedthaninfreeandrichnations，andnowherelesssothan

innationsgovernedbydespots。\'(1*)Commerceemanatesfrom

manufacturesandagriculture，andnonationwhichhasnotbrought

withinitsownbordersboththesemainbranchesofproductiontoa

highstateofdevelopmentcanattain(inourdays)toany

considerableamountofinternalandexternalcommerce。Informer

timestherecertainlyexistedseparatecitiesorleaguesofcities

whichwereenabledbymeansofforeignmanufacturersandforeign

agriculturiststocarryonalargeexchangetrade；butsincethe

greatagriculturalmanufacturingcommercialstateshavesprungup，

wecannolongerthinkoforiginatingamereexchangetradesuchas

theHanseTownspossessed。Inanycasesuchatradeisofso

precariousacharacter，thatithardlydeservesconsiderationin

comparisonwiththatwhichisbasedonthenation\'sownproduction。

Themostimportantobjectsofinternalcommercearearticlesof

food，salt，fuel，andbuildingmaterial，clothingmaterials，then

agriculturalandmanufacturingutensilsandimplements，andtheraw

materialsofagriculturalandminingproductionwhicharenecessary

formanufactures。Theextentofthisinternalinterchangeis

beyondallcomparisongreaterinanationinwhichmanufacturing

industryhasattainedahighstageofdevelopmentthaninamerely

agriculturalnation。Attimesinthelattertheagriculturistlives

chieflyonhisownproductions。Fromwantofmuchdemandfor

variousproductsandlackofmeansoftransport，heisobligedto

produceforhimselfallhisrequirementswithoutregardtowhathis

landismorespeciallyfittedtoproduce；fromwantofmeansof

exchangehemustmanufacturehimselfthegreaterpartofthe

manufacturedarticleswhichherequires。Fuel，buildingmaterials，

provisions，andmineralproductscanfindonlyaverylimited

marketbecauseoftheabsenceofimprovedmeansoftransport，and

hencecannotserveasarticlesforadistanttrade。

Owingtothelimitedmarketandthelimiteddemandforsuch

products，noinducementforstoringthemorfortheaccumulationof

capitalexists。Hencethecapitaldevotedbymereagricultural

nationstointernalcommerceisalmostnil；henceallarticlesof

production，whichdependespeciallyongoodorbadweather，are

subjecttoextraordinaryfluctuationinprices；hencethedangerof

scarcityandfamineisthereforegreaterthemoreanynation

restrictsitselftoagriculture。

Theinternalcommerceofanationmainlyarisesinconsequence

ofandinproportiontotheactivityofitsinternalmanufactures，

oftheimprovedmeansoftransportcalledforthbythem，andofthe

increaseofpopulation，andattainsanimportancewhichistento

twentyfoldgreaterthantheinternaltradeofamerely

agriculturalnation，andfivetotenfoldthatofthemost

flourishingforeigntrade。Ifanyonewillcomparetheinternal

commerceofEnglandwiththatofPolandorSpain，hewillfindthis

observationconfirmed。

Theforeigncommerceofagriculturalnationsofthetemperate

zone，solongasitislimitedtoprovisionsandrawmaterials，

cannotattaintoimportance。

Firstly，becausetheexportsoftheagriculturalnationare

directedtoafewmanufacturingnations，whichthemselvescarryon

agriculture，andwhichindeed，becauseoftheirmanufacturesand

theirextendedcommerce，carryitononamuchmoreperfectsystem

thanthemereagriculturalnation；thatexporttradeistherefore

neithercertainnoruniform。Thetradeinmereproductsisalways

amatterofextraordinaryspeculation，whosebenefitsfallmostly

tothespeculatingmerchants，butnottotheagriculturistsorto

theproductivepoweroftheagriculturalnation。

Secondly，becausetheexchangeofagriculturalproductsfor

foreignmanufacturedgoodsisliabletobegreatlyinterruptedby

thecommercialrestrictionsofforeignstatesandbywars。

Thirdly，becausetheexportofmereproductschieflybenefits

countrieswhicharesituatednearseacoastsandthebanksof

navigablerivers，anddoesnotbenefittheinlandterritory，which

constitutesthegreaterpartoftheterritoryoftheagricultural

nation。

Fourthlyandfinally，becausetheforeignmanufacturingnation

mayfindittoitsinteresttoprocureitsmeansofsubsistenceand

rawmaterialsfromothercountriesandnewlyformedcolonies。

ThustheexportofGermanwooltoEnglandisdiminishedby

importationsintoEnglandfromAustralia；theexportsofFrenchand

GermanwinestoEnglandbyimportationsfromSpain，Portugal，

Sicily，theSpanishandPortugueseislands，andfromtheCape；the

exportsofPrussiantimberbyimportationsfromCanada。

Infact，preparationshavealreadybeenmadetosupplyEngland

withcottonchieflyfromtheEastIndies。IftheEnglishsucceedin

restoringtheoldcommercialroute，ifthenewStateofTexas

becomesstrong，ifcivilisationinSyriaandEgypt，inMexicoand

theSouthAmericanstatesprogresses，thecottonplantersofthe

UnitedStateswillalsobegintoperceivethattheirowninternal

marketwillaffordthemthesafest，mostuniform，andconstant

demand。

Intemperateclimates，byfarthelargestpartofanation\'s

foreigncommerceoriginatesinitsinternalmanufactures，andcan

onlybemaintainedandaugmentedbymeansofitsownmanufacturing

power。

Thosenationsonlywhichproduceallkindsofmanufactured

goodsatthecheapestprices，canhavecommercialconnectionswith

thepeopleofallclimatesandofeverydegreeofcivilisation；can

supplyallrequirements，oriftheycease，createnewones；can

takeinexchangeeverykindofrawmaterialsandmeansof

subsistence。Suchnationsonlycanfreightshipswithavarietyof

objects，suchasarerequiredbyadistantmarketwhichhasno

internalmanufacturedgoodsofitsown。Onlywhentheexport

freightsthemselvessufficetoindemnifythevoyage，canshipsbe

loadedwithlessvaluablereturnfreights。

Themostimportantarticlesofimportationofthenationsof

thetemperatezoneconsistintheproductsoftropicalclimates，in

sugar，coffee，cotton，tobacco，tea，dyestuffs，cacao，spices，and

generallyinthosearticleswhichareknownunderthenameof

colonialproduce。Byfarthegreatestpartoftheseproductsis

paidforwithmanufacturedgoods。Inthisinterchangechiefly

consiststhecauseoftheprogressofindustryinmanufacturing

Countriesofthetemperatezone，andoftheprogressof

civilisationandproductioninthecountriesofthetorridzone。

Thisconstitutesthedivisionoflabour，andcombinationofthe

powersofproductiontotheirgreatestextent，asthesenever

existedinancienttimes，andastheyfirstoriginatedfromthe

DutchandEnglish。

BeforethediscoveryoftherouteroundtheCape，theEast

stillfarsurpassedEuropeinmanufactures。Besidestheprecious

metalsandsmallquantitiesofcloth，linen，arms，irongoods，and

somefabricsofluxury，Europeanarticleswerebutlittleused

there。Thetransportbylandrenderedbothinwardandoutward

conveyanceexpensive。Theexportofordinaryagriculturalproducts

andcommonmanufacturedgoods，eveniftheyhadbeenproducedin

excess，inexchangeforthesilksandcottonstuffs，sugar，and

spices，oftheEast，couldnotbehopedfor。Whateverwemay，

therefore，readoftheimportanceofOrientalcommerceinthose

times，mustalwaysbeunderstoodrelatively；itwasimportantonly

forthattime，butunimportantcomparedwithwhatitisnow。

Thetradeintheproductsofthetorridzonebecamemore

importanttoEuropethroughtheacquisitionoflargerquantitiesof

thepreciousmetalsintheinteriorandfromAmerica，andthrough

thedirectintercoursewiththeEastbytherouteroundtheCape。

Itcouldnot，however，attaintouniversalimportanceaslongas

theEastproducedmoremanufacturedgoodsthansherequired。