Theschool，inasmuchas，injudgingtheinfluencesofclimate
　　ontheproductionofwealth，ithasnotdistinguishedbetween
　　agricultureandmanufacturingindustry，hasfallenintothegravest
　　errorsinrespecttotheadvantagesanddisadvantagesofprotective
　　regulations，whichwecannothereomitthoroughlytoexpose，
　　althoughwehavealreadymadementionofthemingeneralterms
　　elsewhere。
　　Inordertoprovethatitisfoolishtoseektoproduce
　　everythinginoneandthesamecountry，theschoolasksthe
　　question：whetheritwouldbereasonableifwesoughttoproduce
　　winebygrowinggrapesinScottishandEnglishgreenhouses？Itis
　　ofcoursepossibletoproducewineinthismanner，onlyltwouldbe
　　ofmuchworsequalityandmoreexpensivethanthatwhichEngland
　　andScotlandcouldprocureinexchangefortheirmanufactured
　　goods。Toanyonewhoeitherisunwillingorunabletopenetrate
　　moredeeplyintothenatureofthings，thisargumentisastriking
　　one，andtheschoolisindebtedtoitforalargeportionofits
　　popularity；atanyrateamongtheFrenchvinegrowersandsilk
　　manufacturers，andamongtheNorthAmericancottonplantersand
　　cottonmerchants。Regardedinthelightofday，however，itis
　　fundamentallyfalse，sincerestrictionsoncommercialintercourse
　　operatequitedifferentlyontheproductivepowerofagriculture
　　thantheydoontheproductivepowerofmanufacturingindustry。
　　Letusfirstseehowtheyoperateonagriculture。
　　IfFrancerejectsfromherfrontiersGermanfatcattle，or
　　corn，whatwillsheeffectthereby？Inthefirstplace，Germany
　　willtherebybeunabletobuyFrenchwines。Francewilltherefore
　　havetousethoseportionsofhersoilwhicharefittedforthe
　　cultivationofthevinelessprofitablyinproportionasthis
　　destructionofcommercialinterchangelessensherexportationof
　　wines。Somanyfewerpersonswillbeexclusivelyoccupiedwiththe
　　cultivationofthevine，andthereforesomuchlessnative
　　agriculturalproductswillberequired，whichthesepersonswould
　　haveconsumed，whowouldhaveotherwisedevotedthemselves
　　exclusivelytovineculture。Thiswillbethecaseinthe
　　productionofoilaswellasinthatofwine。Francewilltherefore
　　alwaysloseinheragriculturalpoweronotherpointsmuchmore
　　thanshegainsononesinglepoint，becausebyherexclusionofthe
　　Germancattlesheprotectsatradeintherearingandfatteningof
　　cattlewhichhadnotbeenspontaneouslydeveloped，andforwhich，
　　therefore，probablytheagricultureofthosedistrictswherethis
　　branchofindustryhashadtobeartificiallydevelopedisnot
　　adapted。ThuswillitbeifweconsiderFrancemerelyasan
　　agriculturalStateopposedtoGermanyasamerelyagricultural
　　State，andifwealsoassumethatGermanywillnotretaliateon
　　thatpolicybyasimilarone。Thispolicy，however，appearsstill
　　moreinjuriousifweassumethatGermany，asshewillbecompelled
　　tooutofregardtoherowninterests，adoptssimilarlyrestrictive
　　measures，andifweconsiderthatFranceisnotmerelyan
　　agricultural，butalsoamanufacturingState。Germanywill，namely，
　　notmerelyimposehigherdutiesonFrenchwines，butonallthose
　　FrenchproductswhichGermanyeitherproducesherself，orcanmore
　　orlessdowithout，orprocureelsewhere；shewillfurtherrestrict
　　theimportationofthosemanufacturedgoodswhichshecannotat
　　presentproducewithspecialbenefit，butwhichshecanprocure
　　fromotherplacesthanfromFrance。ThedisadvantagewhichFrance
　　hasbroughtuponherselfbythoserestrictions，thusappearstwice
　　orthreetimesgreaterthantheadvantage。Itisevidentthatin
　　Franceonlysomanypersonscanbeemployedinthecultivationof
　　thevine，inthecultivationofolives，andinmanufacturing
　　industry，asthemeansofsubsistence，andrawmaterialswhich
　　Franceeitherproducesherselforprocuresfromabroad，areableto
　　supportandemploy。Butwehaveseenthattherestrictionof
　　importationhasnotincreasedtheagriculturalproduction，buthas
　　merelytransferreditfromonedistricttoanother。Iffreecourse
　　hadbeenpermittedtotheinterchangeofproducts，theimportation
　　ofproductsandrawmaterials，andconsequentlythesaleofwine，
　　oil，andmanufacturedgoods，wouldhavecontinuallyincreased，and
　　consequentlythenumberofpersonsemployedinthecultivationof
　　thevineandolives，andinmanufactures；whilewiththeincreasing
　　traffic，ontheonehand，themeansofsubsistenceandraw
　　materials，and，ontheotherhand，thedemandforhermanufactured
　　products，wouldhaveaugmented。Theaugmentationofthispopulation
　　wouldhaveproducedalargerdemandforthoseprovisionsandraw
　　materialswhichcannoteasilybeimportedfromabroad，andfor
　　whichthenativeagriculturepossessesanaturalmonopoly；the
　　nativeagriculturethereforewouldthushaveobtainedafargreater
　　profit。Thedemandforthoseagriculturalproductsforwhichthe
　　characteroftheFrenchsoilisspeciallyadapted，wouldbemuch
　　moreconsiderableunderthisfreeinterchangethanthatproduced
　　artificiallybyrestriction。Oneagriculturistwouldnothavelost
　　whatanothergained；thewholeagricultureofthecountrywould
　　havegained，butstillmorethemanufacturingindustry。Through
　　restriction，theagriculturalpowerofthecountrythereforeisnot
　　increased，butlimited；andbesidesthis，thatmanufacturingpower
　　isannihilatedwhichwouldhavegrownupfromtheaugmentationof
　　theinternalagriculture，aswellasfromtheforeignimportation
　　ofprovisionsandrawmaterials。Allthathasbeenattainedthrough
　　therestrictionisanincreaseofpricesinfavourofthe
　　agriculturistsofonedistrictattheexpenseoftheagriculturists
　　ofanotherdistrict，butaboveall，attheexpenseofthetotal
　　productiveforceofthecountry。
　　Thedisadvantagesofsuchrestrictionsontheinterchangeof
　　productsarestillmoreclearlybroughttolightinthecaseof
　　EnglandthaninthatofFrance。Throughthecornlaws，ondoubt，a
　　quantityofunfertilelandisbroughtundercultivation；butitis
　　aquestionwhethertheselandswouldnothavebeenbroughtunder
　　cultivationwithoutthem。Themorewool，timber，cattle，andcorn
　　thatEnglandwouldhaveimported，themoremanufacturedgoodswould
　　shehavesold，thegreaternumberofworkmenwouldhavebeen
　　enabledtoliveinEngland，thehigherwouldtheprosperityofthe
　　workingclasseshaverisen。Englandwouldprobablyhavedoubledthe
　　numberofherworkmen。Everysingleworkmanwouldhavelived
　　better，wouldhavebeenbetterabletocultivateagardenforhis
　　pleasureandfortheproductionofusefulvegetables，andwould
　　havesupportedhimselfandhisfamilymuchbetter。Itisevident
　　thatsuchalargeaugmentationoftheworkingpopulation，aswell
　　asofitsprosperityandoftheamountofwhatitconsumed，would
　　haveproducedanenormousdemandforthoseproductsforwhichthe
　　islandpossessesanaturalmonopoly，anditismorethanprobable
　　thattherebydoubleandthreetimesasmuchlandcouldhavebeen
　　broughtintocultivationthanbyunnaturalrestrictions。Theproof
　　ofthismaybeseeninthevicinityofeverylargetown。However
　　largethemassofproductsmaybewhichisbroughtintothistown
　　fromdistantdistrictsformilesaroundit，onecannotdiscovera
　　singletractoflanduncultivated，howevermuchthatlandmayhave
　　beenneglectedbynature。Ifyouforbidtheimportationintosuch
　　atownofcornfromdistantdistricts，youtherebymerelyeffecta
　　diminutionofitspopulation，ofitsmanufacturingindustry，and
　　itsprosperity，andcompelthefarmerwholivesnearthetownto
　　devotehimselftolessprofitableculture。
　　Itwillbeperceivedthatthusfarwearequiteinaccordwith
　　theprevailingtheory。Withregardtotheinterchangeofraw
　　products，theschoolisperfectlycorrectinsupposingthatthe
　　mostextensivelibertyofcommerceis，underallcircumstances，
　　mostadvantageoustotheindividualaswellastotheentireState。
　　Onecan，indeed，augmentthisproductionbyrestrictions；butthe
　　advantageobtainedtherebyismerelyapparent。Weonlythereby
　　divert，astheschoolsays，capitalandlabourintoanotherand
　　lessusefulchannel。Butthemanufacturingproductivepower，onthe
　　contrary，isgovernedbyotherlaws，whichhave，unfortunately，
　　entirelyescapedtheobservationoftheschool。
　　Ifrestrictionontheimportationofrawproductshinderaswe
　　haveseentheutilisationofthenaturalresourcesandpowersof
　　aState，restrictionsontheimportationofmanufacturedgoods，on
　　thecontrary，callintolifeandactivityinthecaseofa
　　populouscountryalreadyfaradvancedinagricultureand
　　civilisationamassofnaturalpowers；indeed，withoutdoubt，the
　　greaterhalfofallnaturalpowers，whichinthemerely
　　agriculturalStatelieidleanddeadforever。If，ontheonehand，
　　restrictionsontheimportationofrawproductsareahindranceto
　　thedevelopmentnotonlyofthemanufacturing，butalsoofthe
　　agriculturalproductive，powersofaState，ontheotherhand，an
　　internalmanufacturingproductivepowerproducedbyrestrictionson
　　theimportationofforeignmanufactures，stimulatesthewhole
　　agriculturalproductivepowersofaStatetoadegreewhichthe
　　mostflourishingforeigntradeisneverabletodo。Ifthe
　　importationofrawproductsmakestheforeigncountrydependenton
　　usandtakesfromitthemeansofmanufacturingforitself，soin
　　likemanner，bytheimportationofforeignmanufactures，arewe
　　rendereddependentontheforeigncountry，andthemeansaretaken
　　fromusofmanufacturingforourselves。Iftheimportationof
　　productsandrawmaterialswithdrawsfromtheforeigncountrythe
　　materialfortheemploymentandsupportofitspopulationand
　　divertsittoournation，sodoestheimportationofmanufactured
　　fabricstakefromustheopportunityofincreasingourown
　　populationandofprovidingitwithemployment。Iftheimportation
　　ofnaturalproductsandrawmaterialsincreasestheinfluenceof
　　ournationontheaffairsoftheworldandgivesusthemeansof
　　carryingoncommercewithallothernationsandcountries，soby
　　theimportationofmanufacturedfabricsarewechainedtothemost
　　advancedmanufacturingnation，whichcanruleoverusalmostasit
　　pleases，asEnglandrulesoverPortugal。Inshort，historyand
　　statisticsalikeprovethecorrectnessofthedictumexpressedby
　　theministersofGeorgeI：thatnationsarericherandmore
　　powerfulthemoretheyexportmanufacturedgoods，andimportthe
　　meansofsubsistenceandrawmaterials。Infact，itmaybeproved
　　thatentirenationshavebeenruinedmerelybecausetheyhave
　　exportedonlymeansofsubsistenceandrawmaterials，andhave
　　importedonlymanufacturedgoods。Montesquieu，1*whounderstood
　　betterthananyoneeitherbeforeorafterhimhowtolearnfrom
　　Historythelessonswhichsheimpartstothelegislatorand
　　politician，haswellperceivedthis，althoughitwasimpossiblefor
　　himinhistimes，whenpoliticaleconomywasasyetbutlittle
　　studied，clearlytounfoldthecausesofit。Incontradictionto
　　thegroundlesssystemofthephysiocraticschool，hemaintained
　　thatPolandwouldbemoreprosperousifshegaveupaltogether
　　foreigncommerce，i。e。ifsheestablishedamanufacturingpowerof
　　herown，andworkedupandconsumedherownrawmaterialsandmeans
　　ofsubsistence。Onlybythedevelopmentofaninternal
　　manufacturingpower，byfree，populous，andindustriouscities，
　　couldPolandobtainastronginternalorganisation，national
　　industry，liberty，andwealth；onlythuscouldshemaintainher
　　independenceandpoliticalsuperiorityoverlesscultivated
　　neighbours。Insteadofforeignmanufacturedgoodssheshouldhave
　　introducedasEnglanddidatonetime，whenshewasonthesame
　　footingasregardsculturewithPolandforeignmanufacturersand
　　foreignmanufacturingcapital。Heraristocracy，however，preferred
　　toexportthepaltryfruitsofserflabourtoforeignmarkets，and
　　toobtaininreturnthecheapandfinegoodsmadebyforeign
　　countries。Theirsuccessorsnowmayanswerthequestion：whetherit
　　isadvisableforanationtobuythefabricsofaforeigncountry
　　solongasitsownnativemanufacturesarenotyetsufficiently
　　strengthenedtobeabletocompeteinpricesandqualitywiththe
　　foreigner。Thearistocracyofothercountriesmaybearherfatein
　　mindwhenevertheyareinstigatedbyfeudalinclinations；theymay
　　thencastaglanceattheEnglisharistocracyinordertoinform
　　themselvesastowhatisthevaluetothegreatlandedproprietors
　　ofastrengthenedmanufacturingpower，offreemunicipal
　　institutions，andofwealthytowns。
　　Withouthereenteringonaninquirywhetheritwouldhavebeen
　　possiblefortheelectivekingsofPoland，underthecircumstances
　　underwhichtheywereplaced，tointroducesuchacommercialsystem
　　asthehereditarykingsofEnglandhavegraduallydevelopedand
　　established，letusimaginethatithadbeendonebythem：canwe
　　notperceivewhatrichfruitssuchasystemwouldhaveyieldedto
　　thePolishnation？Bytheaidoflargeandindustrioustowns，the
　　crownwouldhavebeenrenderedhereditary，thenobilitywouldhave
　　beenobligedtomakeitconvenienttotakepartinlegislationin
　　aHouseofPeers，andtoemancipatetheirserfs；agriculturewould
　　havedevelopeditself，asithasdevelopeditselfinEngland；the
　　Polishnobilitywouldnowberichandrespected；thePolishnation
　　would，evenifnotsorespectedandinfluentialintheaffairsof
　　theworldastheEnglishnationis，wouldhavelongagobecomeso
　　civilisedandpowerfulastoextenditsinfluenceovertheless
　　cultivatedEast。Withoutamanufacturingpowershehasbecome
　　ruinedandpartitioned，andwereshenotsoalreadyshemusthave
　　becomeso。Ofitsownaccordandspontaneouslynomanufacturing
　　powerwasdevelopedinher；itcouldnotbeso，becauseitsefforts
　　wouldhavebeenalwaysfrustratedbyfurtheradvancednations。
　　Withoutasystemofprotection，andunderasystemoffreetrade
　　withfurtheradvancednations，evenifPolandhadretainedher
　　independenceuptothepresenttime，shecouldneverhavecarried
　　onanythingmorethanacrippledagriculture；shecouldneverhave
　　becomerich，powerful，andoutwardlyinfluential。
　　Bythecircumstancethatsomanynaturalresourcesandnatural
　　powersareconvertedbythemanufacturingpowerintoproductive
　　capitalisthefactchieflytobeaccountedfor，thatprotective
　　regulationsactsopowerfullyontheaugmentationofnational
　　wealth。Thisprosperityisnotafalseappearance，liketheeffects
　　ofrestrictionsonthetradeinmerenaturalproducts，itisa
　　reality。Theyarenaturalpowerswhichareotherwisequitedead——
　　naturalresourceswhichareotherwisequitevalueless，whichan
　　agriculturalnationcallstolifeandrendersvaluableby
　　establishingamanufacturingpowerofitsown。
　　Itisanoldobservation，thatthehumanrace，likethevarious
　　breedsofanimals，isimprovedmentallyandbodilybycrossings；
　　thatman，ifafewfamiliesalwaysintermarryamongstoneanother，
　　justastheplantiftheseedisalwayssowninthesamesoil，
　　graduallydegenerates。Weseemobligedtoattributetothislawof
　　naturethecircumstancethatamongmanywildorhalf-wildtribesin
　　AfricaandAsia，whosenumbersarelimited，themenchoosetheir
　　wivesfromforeigntribes。Thefactwhichexperienceshows，that
　　theoligarchiesofsmallmunicipalrepublics，whocontinually
　　intermarryamongthemselves，graduallydieoutorvisibly
　　degenerate，appearssimilarlyattributabletosuchanaturallaw。
　　Itisundeniablethatthemixingoftwoquitedifferentraces
　　results，almostwithoutexception，inapowerfulandfinefuture
　　progeny；andthisobservationextendstothemixingofthewhite
　　racewiththeblackinthethirdandthefourthgeneration。This
　　observationseemstoconfirmmorethananyotherthingthefact，
　　thatthosenationswhichhaveemanatedfromacrossingofrace
　　frequentlyrepeatedandcomprisingthewholenation，havesurpassed
　　allothernationsinpowerandenergyofthemindandcharacter，in
　　intelligence，bodilystrength，andpersonalbeauty。2*
　　Wethinkwemayconcludefromthisthatmenneednot
　　necessarilybesuchdull，clumsy，andunintellectualbeingsaswe
　　perceivethemtobewhenoccupiedincrippledagricultureinsmall
　　villages，whereafewfamilieshaveforthousandsofyears
　　intermarriedonlywithoneanother；whereforcenturiesithas
　　occurredtonoonetomakeuseofanimplementofanewform，orto
　　adoptanewmethodofculture，toalterthestyleofasingle
　　articleofclothing，ortoadoptanewidea；wherethegreatestart
　　consisted，notinexertingone'sbodilyandmentalpowersinorder
　　toobtainasmuchenjoymentaspossible，buttodispensewithas
　　muchofitaspossible。
　　Thisconditionofthingsisentirelychangedandforthebest
　　purposesoftheimprovementofraceofawholenationby
　　establishingamanufacturingpower。Whilealargeportionofthe
　　increaseoftheagriculturalpopulationgoesoverintothe
　　manufacturingcommunity，whiletheagriculturalpopulationof
　　variousdistrictsbecomesmixedbymarriagesbetweenoneanother
　　andwiththemanufacturingpopulation，themental，moral，and
　　physicalstagnationofthepopulationisbrokenup。Theintercourse
　　whichmanufacturesandthecommercebetweenvariousnationsand
　　districtswhichisbaseduponthembringabout，bringsnewblood
　　intothewholenationaswellasintoseparatecommunitiesand
　　families。
　　Thedevelopmentofthemanufacturingpowerhasnoless
　　importantaninfluenceontheimprovementofthebreedsofcattle。
　　Everywhere，wherewoollenmanufactureshavebeenestablished，the
　　raceofsheephasquicklybeenimproved。Owingtoagreaterdemand
　　forgoodmeat，whichanumerousmanufacturingpopulationcreates，
　　theagriculturistwillendeavourtointroducebetterbreedsof
　　cattle。Thegreaterdemandfor'horsesofluxury'isfollowedby
　　theimprovementofthebreedsofhorses。Weshallthennolonger
　　seethosewretchedprimitivebreedsofcattle，horses，andsheep，
　　whichhavingresultedfromthecrippledstateofagricultureand
　　everywherefromneglectofcrossingofbreeds，exhibitaside
　　spectacleworthyoftheirclumsyowners。
　　Howmuchdotheproductivepowersofthenationsalreadyoweto
　　theimportationofforeignbreedsofanimalsandtotheimprovement
　　ofthenativebreeds；andhowmuchhasyettobedoneinthis
　　respect！AllthesilkwormsofEuropearederivedfromafeweggs，
　　whichunderConstantinewerebroughttoConstantinopleinhollow
　　sticks，byGreekmonksfromChina，wheretheirexportationwas
　　strictlyprohibited。Franceisindebtedtotheimportationofthe
　　Thibetgoatforabeautifulproductofherindustry。Itisvery
　　muchtoberegretted，thathithertothebreedingandimprovingof
　　animalshasbeenchieflycarriedoninordertosatisfythe
　　requirementsofluxury，andnotinordertopromotethewelfareof
　　thelargemasses。Thedescriptionsoftravellersshowthatinsome
　　countriesofAsiaaraceofcattlehasbeenseenwhichcombines
　　considerabledraughtpowerwithgreatswiftnessofpace，sothat
　　theycanbeusedwithalmostthesameadvantageashorsesfor
　　ridinganddriving。Whatimmenseadvantageswouldsuchabreedof
　　cattleconferonthesmalleragriculturistsofEurope！Whatan
　　increaseinmeansofsubsistence，productivepower，and
　　convenience，wouldtheworkingclassestherebyobtain！Butevenfar
　　morethanbyimprovedbreeds，andimportationfromonecountryinto
　　anotherofvariousanimals，hastheproductivepowerofthehuman
　　racebeenincreasedbytheimprovementandimportationoftreesand
　　plants。Thisisatonceevident，ifwecomparetheoriginalplants
　　astheyhavesprungfromthebosomofnature，withtheirimproved
　　species。Howlittledotheprimitiveplantsofthevariousspecies
　　ofcornandoffruittrees，ofediblevegetablesandoftheolive，
　　resembleinformandutilitytheirimprovedoffspring！Whatmasses
　　ofmeansofnourishment，ofenjoyment，andcomfort，andwhat
　　opportunitiesfortheusefulapplicationofhumanpowers，havebeen
　　derivedfromthem！Thepotato，thebeet-root，thecultivationof
　　rootcropsforcattle，togetherwiththeimprovedsystemsof
　　manuringandimprovedagriculturalmachines，haveincreased
　　ten-foldthereturnsofagriculture，asitisatpresentcarriedon
　　bytheAsiatictribes。
　　Sciencehasalreadydonemuchwithregardtothediscoveryof
　　newplantsandtheimprovementofthem；butgovernmentshavenot
　　yetdevotedtothisimportantobjectsomuchattentionasthey
　　oughttohavedone，intheinterestsofeconomy。Quiterecently，
　　speciesofgrassaresaidtohavebeendiscoveredinthesavannas
　　ofNorthAmerica，whichfromthepoorestsoilyieldahigher
　　producethananyfodderplants，whichareasyetknowntous，do
　　fromtherichestsoil。Itisveryprobablethatinthewildregions
　　ofAmerica，Asia，Africa，andAustralia，aquantityofplantsstill
　　vegetateuselessly，thetransplantationandimprovementofwhich
　　mightinfinitelyaugmenttheprosperityoftheinhabitantsof
　　temperateclimates。
　　Itisclearthatmostoftheimprovementsandtransportations
　　ofanimalsandvegetables，mostofthenewdiscoverieswhichare
　　madewithrespecttothem，aswellasallotherprogress，
　　inventions，anddiscoveries，arechieflycalculatedtobenefitthe
　　countriesofthetemperatezone，andofthosemostofall，the
　　manufacturingcountries。
　　NOTES：
　　1。EspritdesLois，Livrexx。chap。xxiii。
　　2。AccordingtoChardin，theGuebres，anunmixedtribeoftheold
　　Persians，areanugly，deformed，andclumsyrace，likeallnations
　　ofMongoldescent，whilethePersiannobility，whichforcenturies
　　hasintermarriedwithGeorgianandCircassianwomen，is
　　distinguishedforbeautyandstrength。DrPritchardremarksthat
　　theunmixedCeltsoftheScottishhighlandsarefarbehindthe
　　ScottishLowlandersdescendantsofSaxonsandCeltsinheight，
　　bodilypower，andfinefigure。Pallasmakessimilarobservations
　　respectingthedescendantsoftheRussiansandTartarsin
　　comparisonwiththeunmixedtribestowhichtheyarerelated。Azara
　　affirmsthatthedescendantsoftheSpaniardsandthenativesof
　　Paraguayareamuchmorehandsomeandpowerfulraceofmenthan
　　theirancestorsonbothsides。Theadvantagesofthecrossingof
　　racearenotonlyapparentinthemixingofdifferentnations，but
　　alsointhemixingofdifferentfamilystocksinoneandthesame
　　nation。ThustheCreolenegroesfarsurpassthosenegroeswhohave
　　sprungfromunmixedtribes，andwhohavecomedirectfromAfricato
　　America，inmentalgiftsaswellasinbodilypower。The
　　Caribbeans，theonlyIndianracewhichchoosesregularlyitswomen
　　Fromneighbouringtribes，areineveryrespectsuperiortoall
　　otherAmericantribes。Ifthisisalawofnature，theriseand
　　progresswhichthecitiesoftheMiddleAgesdisplayedshortly
　　aftertheirfoundation，aswellastheenergyandfinebodily
　　appearanceoftheAmericanpeople，arehencepartlyexplained。
　　Chapter19
　　TheManufacturingPowerandtheInstrumentalPowersMaterial
　　CapitalOftheNation
　　Thenationderivesitsproductivepowerfromthementaland
　　physicalpowersoftheindividuals；fromtheirsocial，municipal，
　　andpoliticalconditionsandinstitutions；fromthenatural
　　resourcesplacedatitsdisposal，orfromtheinstrumentsit
　　possessesasthematerialproductsofformermentalandbodily
　　exertionsmaterial，agricultural，manufacturing，andcommercial
　　capital。Inthelasttwochapterswehavedealtwiththeinfluence
　　ofmanufacturesonthethreefirst-namedsourcesofthenational
　　productivepowers；thepresentandthefollowingchapterare
　　devotedtothedemonstrationofitsinfluenceontheonelast
　　named。
　　Thatwhichweunderstandbytheterm'instrumentalpowers'is
　　called'capital'bytheschool。Itmattersbutlittlebywhatword
　　anobjectissignified，butitmattersverymuchespeciallywith
　　regardtoscientificinvestigationsthatthewordselectedshould
　　alwaysindicateoneandthesameobject，andnevermoreorless。As
　　often，therefore，asdifferentbranchesofamatterarediscussed，
　　thenecessityforadistinctionarises。Theschoolnowunderstands
　　bytheterm'capital'notmerelythematerial，butalsoallmental
　　andsocialmeansofandaidstoproduction。Itclearlyought，
　　therefore，tospecifywhereveritspeaksofcapital，whetherthe
　　materialcapital，thematerialinstrumentsofproduction，orthe
　　mentalcapital，themoralandphysicalpowerswhichareinherentin
　　individuals，orwhichindividualsderivefromsocial，municipal，
　　andpoliticalconditions，aremeant。Theomissionofthis
　　distinction，whereitoughttobedrawn，mustnecessarilyleadto
　　falsereasoning，orelseservetoconcealfalsereasoning。
　　Meanwhile，however，asitisnotsomuchourbusinesstofounda
　　newnomenclatureastoexposetheerrorscommittedunderthecover
　　ofaninexactandinadequatenomenclature，wewilladopttheterm
　　'capital，'butdistinguishbetweenmentalandmaterialcapital，
　　betweenmaterial，agricultural，manufacturing，andcommercial
　　capital，betweenprivateandnationalcapital。
　　AdamSmithbymeansofthecommonexpression，capitalurges
　　thefollowingargumentagainsttheprotectivecommercialpolicy
　　whichisadoptedtothepresentdaybyallhisfollowers：'A
　　countrycanindeedbymeansofsuchprotectiveregulations
　　produceaspecialdescriptionofmanufacturessoonerthanwithout
　　them；andthisspecialkindofmanufactureswillbeabletoyield
　　aftersometimeascheaporstillcheaperproductionsthanthe
　　foreigncountry。Butalthoughinthismannerwecansucceedin
　　directingnationalindustrysoonerintothosechannelsintowhich
　　itwouldlaterhaveflowedofitsownaccord，itdoesnotinthe
　　leastfollowthatthetotalamountofindustryoroftheincomesof
　　thecommunitycanbeincreasedbymeansofsuchmeasures。The
　　industryofthecommunitycanonlybeaugmentedinproportionas
　　itscapitalincreases，andthecapitalofthecommunitycanonly
　　increaseinaccordancewiththesavingswhichitgraduallymakes
　　fromitsincome。Now，theimmediateeffectofthesemeasuresisto
　　decreasetheincomeofthecommunity。Butitiscertainthatthat
　　whichdecreasesthatincomecannotincreasethecapitalmore
　　quicklythanitwouldhavebeenincreasedbyitself，ifit，aswell
　　asindustry，hadbeenleftfree。'1*
　　Asaproofofthisargument，thefounderoftheschooladduces
　　thewell-knownexample，refutedbyusinthepreviouschapter，how
　　foolishitwouldbetoplantthevineinScotland。
　　Inthesamechapterhestates，theannualincomeofthe
　　communityisnothingelsebutthevalueinexchangeofthose
　　objectswhichthenationalindustryproducesannually。
　　Intheabove-namedargumentliesthechiefproofoftheschool
　　againsttheprotectivecommercialpolicy。Itadmitsthatby
　　measuresofprotectionmanufactoriescanbeestablishedandenabled
　　toproducemanufacturedgoodsascheaporevencheaperthanthey
　　canbeobtainedfromabroad；butitmaintainsthattheimmediate
　　effectofthesemeasuresistodecreasetheincomeofthecommunity
　　thevalueinexchangeofthosethingswhichthenationalindustry
　　producesannually。Ittherebyweakensitspowerofacquiring
　　capital，forcapitalisformedbythesavingswhichthenation
　　makesoutofitsannualincome；thetotalofthecapital，however，
　　determinesthetotalofthenationalindustry，andthelattercan
　　onlyincreaseinproportiontotheformer。Itthereforeweakensits
　　industrybymeansofthosemeasures——byproducinganindustry
　　which，inthenatureofthings，iftheyhadbeenlefttotheirown
　　freecoursewouldhaveoriginatedofitsownaccord。
　　Itisfirstlytoberemarkedinoppositiontothisreasoning，
　　thatAdamSmithhasmerelytakenthewordcapitalinthatsensein
　　whichitisnecessarilytakenbyrentiersormerchantsintheir
　　book-keepingandtheirbalance-sheets，namely，asthegrandtotal
　　oftheirvaluesofexchangeincontradistinctiontotheincome
　　accruingtherefrom。
　　Hehasforgottenthathehimselfincludesinhisdefinitionof
　　capitalthementalandbodilyabilitiesoftheproducersunder
　　thisterm。
　　Hewronglymaintainsthattherevenuesofthenationare
　　dependentonlyonthesumofitsmaterialcapital。Hisownwork，on
　　thecontrarycontainsathousandproofsthattheserevenuesare
　　chieflyconditionalonthesumofitsmentalandbodilypowers，and
　　onthedegreetowhichtheyareperfected，insocialandpolitical
　　respectsespeciallybymeansofmoreperfectdivisionoflabour
　　andconfederationofthenationalproductivepowers，andthat
　　althoughmeasuresofprotectionrequiresacrificesofmaterial
　　goodsforatime，thesesacrificesaremadegoodahundred-foldin
　　powers，intheabilitytoacquirevaluesofexchange，andare
　　consequentlymerelyreproductiveoutlaybythenation。
　　Hehasforgottenthattheabilityofthewholenationto
　　increasethesumofitsmaterialcapitalconsistsmainlyinthe
　　possibilityofconvertingunusednaturalpowersintomaterial
　　capital，intovaluableandincome-producinginstruments，andthat
　　inthecaseofthemerelyagriculturalnationamassofnatural
　　powersliesidleordeadwhichcanbequickenedintoactivityonly
　　bymanufactures。Hehasnotconsideredtheinfluenceof
　　manufacturesontheinternalandexternalcommerce，onthe
　　civilisationandpowerofthenation，andonthemaintenanceofits
　　independence，aswellasonthecapabilityarisingfromtheseof
　　gainingmaterialwealth。
　　Hehase。g。nottakenintoconsiderationwhatamassofcapital
　　theEnglishhaveobtainedbymeansofcolonisationMartin
　　estimatestheamountofthisatmorethantwoandahalfmilliards
　　ofpoundssterling。
　　He，whoneverthelesselsewhereprovessoclearlythatthe
　　capitalemployedinintermediatecommerceisnottoberegardedas
　　belongingtoanygivennation，solongasitisnotequally
　　embodiedinthatnation'sland，hasherenotdulyconsideredthat
　　thenationalisationofsuchcapitalismosteffectuallyrealisedby
　　favouringthenation'sinlandmanufactures。
　　Hehasnottakenintoaccount，thatbythepolicyoffavouring
　　nativemanufactureamassofforeigncapital，mentalaswellas
　　material，isattractedintothecountry。
　　Hefalselymaintainsthatthesemanufactureshaveoriginatedin
　　thenaturalcourseofthingsandoftheirownaccord；
　　notwithstandingthatineverynationthepoliticalpowerinterferes
　　togivetothisso-callednaturalcourseanartificialdirection
　　forthenation'sownspecialadvantage。
　　Hehasillustratedhisargument，foundedonanambiguous
　　expressionandconsequentlyfundamentallywrong，byafundamentally
　　wrongexample，inseekingtoprovethatbecauseitwouldbefoolish
　　toproducewineinScotlandbyartificialmethods，thereforeit
　　wouldbefoolishtoestablishmanufacturesbyartificialmethods。
　　Hereducestheprocessoftheformationofcapitalinthe
　　nationtotheoperationofaprivaterentier，whoseincomeis
　　determinedbythevalueofhismaterialcapital，andwhocanonly
　　increasehisincomebysavingswhichheagainturnsintocapital。
　　Hedoesnotconsiderthatthistheoryofsavings，whichinthe
　　merchant'sofficeisquitecorrect，iffollowedbyawholenation
　　mustleadtopoverty，barbarism，powerlessness，anddecayof
　　nationalprogress。Whereeveryonesavesandeconomisesasmuchas
　　hepossiblycan，nomotivecanexistforproduction。Whereeveryone
　　merelytakesthoughtfortheaccumulationofvaluesofexchange，
　　thementalpowerrequiredforproductionvanishes。Anation
　　consistingofsuchinsanemiserswouldgiveupthedefenceofthe
　　nationfromfearoftheexpensesofwar，andwouldonlylearnthe
　　truthafterallitspropertyhadbeensacrificedtoforeign
　　extortion，thatthewealthofnationsistobeattainedinamanner
　　differenttothatoftheprivaterentier。
　　Theprivaterentierhimself，asthefatherofafamily，must
　　followatotallydifferenttheorytotheshopkeepertheoryofthe
　　materialvaluesofexchangewhichisheresetup。Hemustatleast
　　expendontheeducationofhisheirsasmuchvalueofexchangeas
　　willenablethemtoadministerthepropertywhichissomedayto
　　falltotheirlot。
　　Thebuildingupofthematerialnationalcapitaltakesplacein
　　quiteanothermannerthanbymeresavingasinthecaseofthe
　　rentier，namely，inthesamemannerasthebuildingupofthe
　　productivepowers，chieflybymeansofthereciprocalaction
　　betweenthementalandmaterialnationalcapital，andbetweenthe
　　agricultural，manufacturing，andcommercialcapital。
　　Theaugmentationofthenationalmaterialcapitalisdependent
　　ontheaugmentationofthenationalmentalcapital，andvicevers？
　　Theformationofthematerialagriculturalcapitalisdependent
　　ontheformationofthematerialmanufacturingcapital，andvice
　　vers？
　　Thematerialcommercialcapitalactseverywhereasan
　　intermediary，helpingandcompensatingbetweenboth。
　　Intheuncivilisedstate，inthestateofthehunterandthe
　　fisher，thepowersofnatureyieldalmosteverything，capitalis
　　almostnil。Foreigncommerceincreasesthelatter，butalsoinso
　　doingthroughfire-arms，powder，leadtotallydestroysthe
　　productivenessoftheformer。Thetheoryofsavingscannotprofit
　　thehunter；hemustberuinedorbecomeashepherd。
　　Inthepastoralstatethematerialcapitalincreasesquickly，
　　butonlysofarasthepowersofnatureaffordspontaneously
　　nourishmenttothecattle。Theincreaseofpopulation，however，
　　followscloselyupontheincreaseofflocksandherdsandofthe
　　meansofsubsistence。Ontheonehand，theflocksandherdsaswell
　　aspasturesbecomedividedintosmallershares；ontheotherhand，
　　foreigncommerceoffersinducementstoconsumption。Itwouldbein
　　vaintopreachtothepastoralnationthetheoryofsavings；it
　　mustsinkintopovertyorpassoverintotheagriculturalState。
　　Totheagriculturalnationisopenanimmense，butatthesame
　　timelimited，fieldforenrichingitselfbyutilisingthedormant
　　powersofnature。
　　Theagriculturistforhimselfalonecansaveprovisions，
　　improvehisfields，increasehiscattle；buttheincreaseofthe
　　meansofsubsistencealwaysfollowstheincreaseofpopulation。The
　　materialcapitalnamely，cultivatedlandandcattle，in
　　proportionastheformerbecomesmorefertileandthelatter
　　increase，becomesdividedamongalargernumberofpersons。
　　Inasmuch，however，asthesurfaceofthelandcannotbeincreased
　　byindustry，andthelandcannotbeutiliseduptothemeasureof
　　itsnaturalcapacity，forwantofmeansoftransport，whichaswe
　　showedintheprecedingchaptermustremainimperfectinsucha
　　stateofthingsowingtolackofintercourse；andasmoreoverthe
　　merelyagriculturalnationismostlyinwantofthoseinstruments，
　　intelligence，motivestoexertion，andalsoofthatenergyand
　　socialdevelopmentwhichareimpartedtothenationthrough
　　manufacturesandthecommercewhichoriginatesfromthem，themere
　　agriculturalpopulationsoonreachesapointinwhichtheincrease
　　ofmaterialagriculturalcapitalcannolongerkeeppacewiththe
　　increaseofpopulation，andwhereconsequentlyindividualpoverty
　　increasesmoreandmore，notwithstandingthatthetotalcapitalof
　　thenationiscontinuallyincreasing。
　　Insuchaconditionthemostimportantproductofthenation
　　consistsofmen，who，astheycannotfindsufficientsupportin
　　theirowncountry，emigratetoothercountries。Itcanbebut
　　littleconsolationtosuchacountry，thattheschoolregardsman
　　asanaccumulatedcapital；fortheexportationofmendoesnot
　　occasionreturnfreights，but，onthecontrary，causesthe
　　unproductiveexportofconsiderableamountsofmaterialvaluesin
　　theshapeofimplements，utensils，money，&c。。
　　Itisclearthatinsuchastateofthings，wherethenational
　　divisionoflabourisnotproperlydeveloped，neitherindustrynor
　　economycanbringabouttheaugmentationofthematerialcapital
　　materialenrichmentofindividuals。
　　Theagriculturalcountryis，ofcourse，rarelyquitewithout
　　anyforeigncommerce，andforeigncommerce，asfarasitextends，
　　alsosuppliestheplaceofinternalmanufactureswithregardtothe
　　augmentationofcapital，inasmuchasitplacesthemanufacturerof
　　theforeigncountryincommercialrelationwiththeagriculturist
　　ofthehomecountry。This，however，takesplaceonlypartiallyand
　　veryimperfectly；firstly，becausethiscommerceextendsmerelyto
　　specialstapleproducts，andchieflyonlytothosedistrictswhich
　　aresituatedonthesea-coastandonnavigablerivers；and
　　secondly，becauseitisinanycasebutaveryirregularone，and
　　isliabletobefrequentlyinterruptedbywars，fluctuationsin
　　tradeandchangesincommerciallegislation，byspeciallyrich
　　harvests，andbyforeignimportations。
　　Theaugmentationofthematerialagriculturalcapitalcanonly
　　takeplaceonalargescale，withregularityandcontinuously，if
　　acompletelydevelopedmanufacturingpowerisestablishedinthe
　　midstoftheagriculturists。
　　Byfarthegreatestportionofthematerialcapitalofanation
　　isboundtoitslandandsoil。Ineverynationthevalueoflanded
　　property，ofdwellinghousesinruraldistrictsandintowns，of
　　workshops，manufactories，waterworks，mines，&c。amountstofrom
　　two-thirdstonine-tenthsoftheentirepropertyofthenation。It
　　mustthereforebeacceptedasarule，thatallthatincreasesor
　　decreasesthevalueofthefixedproperty，increasesordecreases
　　thetotalofthematerialcapitalofthenation。Now，itisevident
　　thatthecapitalvalueoflandofequalnaturalfertilityis
　　incomparablylargerintheproximityofasmalltownthaninremote
　　districts；thatthisvalueisincomparablylargerstillinthe
　　neighbourhoodofalargetownthaninthatofasmallone；andthat
　　inmanufacturingnationsthesevaluesarebeyondallcomparison
　　greaterthaninmereagriculturalnations。Wemayobserve
　　inverselythatthevalueofthedwellinghousesandmanufacturing
　　buildingsintowns，andthatofbuildingland，risesorfallsas
　　aruleinthesameratioinwhichthecommercialintercourseof
　　thetownwiththeagriculturistsisextendedorrestricted，orin
　　whichtheprosperityoftheseagriculturistsprogressesorrecedes。
　　Fromthisitisevidentthattheaugmentationoftheagricultural
　　capitalisdependentontheaugmentationofthemanufacturing
　　capital；andinverselythelatterontheformer。2*
　　Thisreciprocalactionis，however，inthecaseofthechange
　　fromtheagriculturalstateintothemanufacturingstatemuch
　　strongeronthepartofmanufacturethanonthepartof
　　agriculture。Forastheincreaseofcapitalwhichresultsfromthe
　　changefromtheconditionofthemerehuntertothepastoral
　　conditionischieflyeffectedbytherapidincreaseofflocksand
　　herds，astheincreaseofcapitalresultingfromthechangefrom
　　thepastoralconditionintotheagriculturalconditionischiefly
　　effectedbytherapidincreaseincultivatedlandandinsurplus
　　produce，so，intheeventofachangefromtheagricultural
　　conditionintothemanufacturingcondition，istheaugmentationof
　　thematerialcapitalofthenationchieflyeffectedbythosevalues
　　andpowerswhicharedevotedtotheestablishmentofmanufactures，
　　becausetherebyamassofformerlyunutilisednaturalandmental
　　powersareconvertedintomentalandmaterialcapital。Farfrom
　　hinderingthesavingofmaterialcapital，theestablishmentof
　　manufacturesisthefirstthingwhichaffordstothenationthe
　　meansofemployingitsagriculturalsavingsinaneconomical
　　manner，anditisthefirstmeansbywhichthenationcanbe
　　incitedtoagriculturaleconomy。
　　InthelegislativebodiesofNorthAmericaithasoftenbeen
　　mentionedthatcornthererotsintheearfromwantofsale，
　　becauseitsvaluewillnotpaytheexpenseofharvestingit。In
　　Hungaryitisassertedthattheagriculturistisalmostchokedwith
　　excessofproduce，whilemanufacturedgoodsarethreetofourtimes
　　dearertherethaninEngland。Germanyevencanremembersuchtimes。
　　InagriculturalStates，therefore，allsurplusagriculturalproduce
　　isnotmaterialcapital。Bymeansofmanufacturesitfirstbecomes
　　commercialcapitalbybeingwarehoused，andthenbybeingsoldto
　　themanufacturersitisturnedintomanufacturingcapital。Whatmay
　　beunutilisedstockinthehandoftheagriculturist，becomes
　　productivecapitalinthehandofthemanufacturer，andvicevers？
　　Productionrendersconsumptionpossible，andthedesireto
　　consumeincitestoproduction。Themereagriculturalnationisin
　　itsconsumptiondependentonforeignconditions，andiftheseare
　　notfavourabletoit，thatproductiondiesoutwhichwouldhave
　　ariseninconsequenceofthedesiretoconsume。Butinthatnation
　　whichcombinesmanufactureswithagricultureinitsterritory，the
　　reciprocalinducementcontinuallyexists，andtherefore，also，
　　therewillbecontinuousincreaseofproductionandwithit
　　augmentationofcapitalonbothsides。
　　Astheagricultural-manufacturingnationisforthereasons
　　whichwehavealreadygivenalwaysincomparablyricherinmaterial
　　capitalthanthemereagriculturalnationwhichisevidentata
　　glance，sointheformertherateofinterestisalwaysmuch
　　lower，andlargercapitalandmorefavourableconditionsareatthe
　　disposalofmenofenterprise，thaninthepurelyagricultural
　　nation。Itfollowsthattheformercanalwaysvictoriouslycompete
　　withthenewlyformedmanufactoriesintheagriculturalnation；
　　thattheagriculturalnationremainscontinuallyindebttothe
　　manufacturingnation，andthatinthemarketsoftheformer
　　continualfluctuationsinthepricesofproduceandmanufactured
　　goodsandinthevalueofmoneytakeplace，wherebythe
　　accumulationofmaterialwealthinthepurelyagriculturalnation
　　isnolessendangeredthanitsmoralityanditshabitsofeconomy。
　　Theschooldistinguishesfixedcapitalfromcirculating
　　capital，andclassesundertheformerinamostremarkablemanner
　　amultitudeofthingswhichareincirculationwithoutmakingany
　　practicalapplicationwhateverofthisdistinction。Theonlycase
　　inwhichsuchadistinctioncanbeofvalue，itpassesbywithout
　　notice。Thematerialaswellasthementalcapitalisnamely
　　boundinagreatmeasuretoagriculture，tomanufactures，to
　　commerce，ortospecialbranchesofeither——nayoften，indeed，to
　　speciallocalities。Fruittrees，whencutdown，areclearlynotof
　　thesamevaluetothemanufacturerifheusesthemforwoodwork
　　astheyaretotheagriculturistifheusesthemforthe
　　productionoffruit。Sheep，if，ashasalreadyfrequentlyhappened
　　inGermanyandNorthAmerica，theyhavetobeslaughteredin
　　masses，haveevidentlynotthevaluewhichtheywouldpossesswhen
　　usedfortheproductionofwool。Vineyardshaveassuchavalue
　　which，ifusedasarablefields，theywouldlose。Ships，ifused
　　fortimberorforfirewood，haveamuchlowervaluethanwhenthey
　　serveasmeansoftransport。Whatusecanbemadeofmanufacturing
　　buildings，water-power，andmachineryifthespinningindustryis
　　ruined？Inlikemannerindividualslose，asarule，thegreatest
　　partoftheirproductivepower，consistinginexperience，habits，
　　andskill，whentheyaredisplaced。Theschoolgivestoallthese
　　objectsandpropertiesthegeneralnameofcapital，andwould
　　transplantthembyvirtueofthisterminologyatitspleasure
　　fromonefieldofemploymenttoanother。J。B。Saythusadvisesthe
　　Englishtodiverttheirmanufacturingcapitaltoagriculture。How
　　thiswonderistobeaccomplishedhehasnotinformedus，andit
　　hasprobablyremainedasecrettoEnglishstatesmentothepresent
　　day。Sayhasinthisplaceevidentlyconfoundedprivatecapital
　　withnationalcapital。Amanufacturerormerchantcanwithdrawhis
　　capitalfrommanufacturesorfromcommercebysellinghisworksor
　　hisshipsandbuyinglandedpropertywiththeproceeds。Awhole
　　nation，however，couldnoteffectthisoperationexceptby
　　sacrificingalargeportionofitsmaterialandmentalcapital。The
　　reasonwhytheschoolsodeliberatelyobscuresthingswhichareso
　　clearisapparentenough。Ifthingsarecalledbytheirproper
　　names，itiseasilycomprehendedthatthetransferofthe
　　productivepowersofanationfromonefieldofemploymentto
　　anotherissubjecttodifficultiesandhazardswhichdonotalways
　　speakinfavourof'freetrade，'butveryofteninfavourof
　　nationalprotection。
　　NOTES：
　　1。WealthofNations，bookIV。chap。ii。
　　2。Comparethefollowingparagraph，whichappearedintheTimes
　　during1883：
　　'MANUFACTURESANDAGRICULTURE。Thestatisticianofthe
　　AgriculturalDepartmentoftheUnitedStateshasshowninarecent
　　reportthatthevalueoffarmlandsdecreasesinexactproportion
　　astheratioofagriculturetootherindustriesincreases。Thatis，
　　whereallthelabourisdevotedtoagriculture，thelandisworth
　　lessthanwhereonlyhalfofthepeoplearefarmlabourers，and
　　whereonlyaquarterofthemaresoengagedthefarmsandtheir
　　productsarestillmorevaluable。Itis，infact，provedby
　　statisticsthatdiversifiedindustriesareofthegreatestvalueto
　　aState，andthatthepresenceofamanufactorynearafarm
　　increasesthevalueofthefarmanditscrops。Itisfurther
　　establishedthat，dividingtheUnitedStatesintofoursectionsor
　　classes，withreferencetotheratioofagriculturalworkerstothe
　　wholepopulation，andputtingthoseStateshavinglessthan30per
　　centofagriculturallabourersinthefirstclass，allhavingover
　　30andlessthan50inthesecond，thosebetween50and70inthe
　　third，andthosehaving70ormoreinthefourth，thevalueof
　　farmsisininverseratiototheagriculturalpopulation；andthat，
　　whereasinthepurelyagriculturalsection，thefourthclass，the
　　valueofthefarmsperacreisonly$528c，inthenextclassitis
　　$1303c，inthethird$2221c，andinthemanufacturingdistricts
　　$4091c。Thisshowsanenormousadvantageforamixeddistrict。Yet
　　notonlyisthelandmorevaluable——theproductionperacreis
　　greater，andthewagespaidtofarmhandslarger。Manufacturesand
　　variedindustriesthusnotonlybenefitthemanufacturers，butare
　　ofequalbenefitandadvantagetothefarmersaswell。Thelatter
　　would，therefore，dowelltoabandontheirprejudiceagainst
　　factories，whichreallyincreasethevalueoftheirproperty
　　insteadofdepreciatingit。'——TR。
　　Chapter20
　　TheManufacturingPowerandtheAgriculturalInterest
　　Ifprotectivedutiesinfavourofhomemanufacturesproved
　　disadvantageoustotheconsumersofmanufacturedgoodsandserved
　　onlytoenrichthemanufacturer，thisdisadvantagewouldespecially
　　befeltbythelandedproprietorandtheagriculturist，themost
　　numerousandimportantclassofthoseconsumers。Butitcanbe
　　provedthateventhisclassderivesfargreateradvantagesfromthe
　　establishmentofmanufactures，thanthemanufacturersthemselves
　　do；forbymeansofthesemanufacturesademandforgreatervariety
　　andforlargerquantitiesofagriculturalproductsiscreated，the
　　valueinexchangeoftheseproductsisraised，theagriculturistis
　　placedinapositiontoutilisehislandandhispowersoflabour
　　moreprofitably。Henceemanatesanincreaseofrent，ofprofits，
　　andwages；andtheaugmentationofrentsandcapitalisfollowedby
　　anincreaseinthesellingvalueoflandandinthewagesof
　　labour。
　　Thesellingvalueoflandedpropertyisnothingelsethan
　　capitalisedrent；itisdependent，ontheonehand，ontheamount
　　andthevalueoftherent，but，ontheotherhand，andchiefly，on
　　thequantitiesofmentalandmaterialcapitalexistinginthe
　　nation。
　　Everyindividualandsocialimprovement，especiallyevery
　　augmentationofproductivepowerinthenation，but，mostofall，
　　ofthemanufacturingpower，raisestheamountofrents，whileat
　　thesametimeitlessenstheproportionwhichrentbearstothe
　　grossproduce。Inanagriculturalnationlittledevelopedand
　　scantilypeopled，e。g。inPoland，theproportionofrentamountsto
　　one-halforonethirdthegrossproduce。inawell-developed，
　　populous，andwealthynation，e。g。England，itonlyamountsto
　　one-fourthorone-fifthpartofthatproduce。Nevertheless，the
　　actualworthofthissmallerproportionisdisproportionately
　　greaterthantheworthofthatlargerproportion-inmoneyvalue
　　especially，andstillmoreinmanufacturedgoods。Forthefifth
　　partoftwenty-fivebushelstheaverageproduceofwheatin
　　Englandequalsfivebushels；thethirdpart，however，ofnine
　　bushelstheaverageproduceofwheatinPolandamountsonlyto
　　threebushels；further，thesefivebushelsinEnglandareworthon
　　anaverage25s。to30s。；whilethesethreebushelsintheinterior
　　ofPolandareatthemostworth8s。to9s。；andfinally，goodsin
　　EnglandareatleasttwiceascheapasinmanufacturedPoland：
　　consequentlytheEnglishlandedproprietorisabletobuyforhis
　　30s。ofmoney-renttenyardsofcloth，butthePolishlandownerfor
　　his9s。ofrentcanobtainscarcelytwoyards，fromwhichitis
　　evidentthattheEnglishlandedproprietorbythefifthpartofthe
　　grossproduceisasrentierthreetimes，andasconsumerof
　　manufacturedgoodsfivetimes，betteroffthanthePolishlandowner
　　isbythethirdpartofhisgrossproduce。Butthatfarmersand
　　agriculturallabourersalsomustinEnglandespeciallyas
　　consumersofmanufacturedgoodsbedisproportionatelybetteroff
　　thaninPoland，isshownbythefactthatoutoftheproduceof
　　twenty-fivebushelsinEnglandtwentybushelsgoforsowing，for
　　cultivationofthefield，wages，andprofits：halfofwhichorten
　　bushelsdevotedtothelasttwoitemshaveanaveragevalueof
　　60s。ortwentyyardsofclothat3s。peryard，whilefromthe
　　produceofninebushelsinPolandonlysixbushelsgoforsowing，
　　cultivationofthefield，profit，andwages，halfofwhich，or
　　threebushels，devotedtothelasttwoitems，havemerelyavalue
　　of10s。to12s。orthreeandahalfyardsofcloth。
　　Rentisachiefmeansofusefullyemployingmaterialcapital。
　　Itsprice。therefore，dependsalsoonthequantityofthecapital
　　existinginthenationandtheproportionofthesupplyofitto
　　thedemand。Bythesurplusofthecapitalwhichaccumulatesina
　　manufacturingnationastheresultofitshomeandforeign
　　commerce，bythelowrateofinterestwhichthereexists，andthe
　　circumstancethatinamanufacturingandcommercialnationanumber
　　ofindividualswhohavebecomewealthyarealwaysseekingtoinvest
　　theirsurpluscapitalinland，thesellingpriceofagivenamount
　　ofrentoflandisalwaysdisproportionatelyhigherinsucha
　　nationthaninthemereagriculturalnation。InPolandtherentof
　　landissoldattenortwentyyears'purchase；inEnglandatthirty
　　orfortyyears'purchase。Intheproportioninwhichtheselling
　　valueoftherentoflandishigherinthemanufacturingand
　　commercialnationthanintheagriculturalnation，soalsoisthe
　　sellingvalueofthelanditselfhigherintheformerthaninthe
　　latter。Forlandofequalnaturalfertilityineachcountry，the
　　valueisinEnglandtentotwentytimeshigherthaninPoland。
　　Thatmanufactureshaveaninfluenceontheamountofrent，and
　　thereforeonthevalueinexchangeoftheland，isafactwhich
　　AdamSmithcertainlynoticesattheconclusionoftheninthchapter
　　ofhisfirstbook，butonlyincidentallyandwithoutbringingthe
　　vastimportanceofmanufacturesinthisrespectproperlytolight。
　　Hetheredistinguishesthosecauseswhichinfluencedirectlythe
　　augmentationofrentsuchastheimprovementofthelanditself，
　　theincreaseinthenumberandthevalueofthecattlemaintained
　　uponitfromthosecauseswhichhaveonlyanindirectinfluenceon
　　thataugmentation，amongwhichlatterheclassesmanufactures。In
　　thismannerheplacesthemaincauseoftheaugmentationofthe
　　rentandofthevalueoflandnamely，themanufacturesinthe
　　backgroundsothatitisscarcelyperceptible；whileheplacesthe
　　improvementofthelanditselfandtheincreaseofcattle，which
　　arethemselvesforthemostparttheresultofmanufacturesandof
　　thecommerceproceedingfromthem，asthechiefcause，oratleast
　　asanequalcause，ofthataugmentation。
　　AdamSmithandhisfollowershavenotrecognisedbyanymeans
　　toitsfullextentthevalueofmanufacturesinthisrespect。
　　Wehaveremarkedthatinconsequenceofmanufacturesandofthe
　　commerceconnectedwiththem，thevalueoflandofequalnatural
　　fertilityinEnglandistentotwentytimesgreaterthaninPoland。
　　IfwenowcomparethetotalproduceoftheEnglishmanufacturing
　　productionandoftheEnglishmanufacturingcapitalwiththetotal
　　produceoftheEnglishagriculturalproductionandoftheEnglish
　　agriculturalcapital，weshallfindthatthegreatestpartofthe
　　wealthofthenationshowsitselfinthethusincreasedvalueof
　　landedproperty。
　　MacQueen1*haspreparedthefollowingestimateofthe
　　nationalwealthandnationalincomeofEngland：
　　I。NATIONALCAPITAL。
　　1。Inagriculture，lands，mines，andfisheries……
　　2，604mill。
　　Workingcapitalincattle，implements，stocks，andmoney……
　　655"
　　Householdfurnitureandutensilsoftheagriculturists……
　　52"
　　3，311"
　　2。Investedinmanufacturesandcommerce：
　　Manufactures，andhometradeinmanufactured
　　goods……178
　　1/2"
　　Tradeincolonialgoods……11
　　"
　　Foreigntradeinmanufacturedgoods……16
　　1/2"
　　206
　　"
　　Tothisaddincreasesince1835inwhichyearthis
　　estimatewasmade……12
　　"
　　218
　　mill。
　　Thenintownbuildingsofallkinds，andinmanu-
　　facturingbuildings605
　　"
　　Inships……33
　　1/2"
　　Inbridges，canals，andrailways……118
　　"
　　Inhorseswhicharenotusedinagriculture……20
　　"
　　776
　　1/2mill。
　　Amountofthewholenationalcapitalexclusiveof
　　thecapitalinvestedinthecolonies，inforeignloans，
　　andintheEnglishpublicfunds……4，305
　　1/2mill。
　　II。GROSSNATIONALPRODUCTION。
　　1。Ofagriculture，mines，andfisheries……539
　　mill。
　　2。Manufacturingproduction……259
　　1/2"
　　798
　　1/2"
　　Fromthisestimateitmaybeseen：
　　1。Thatthevalueofthelanddevotedtoagricultureamountsto
　　26/43ofthewholeEnglishnational，property，andisabouttwelve
　　timesmorethanthevalueofthewholecapitalinvestedin
　　manufacturesandincommerce。
　　2。Thatthewholecapitalinvestedinagricultureamountsto
　　overthree-fourthsoftheEnglishnationalcapital。
　　3。ThatthevalueofthewholefixedpropertyinEngland，
　　namely：
　　Oftheland，&c。2，604
　　mill。
　　Ofhousesintowns，andmanufacturingbuildings……605
　　"
　　Ofcanalsandrailways……118
　　"
　　3，327
　　"
　　isthereforeequaltomorethanthree-fourthsofthewholeEnglish
　　nationalcapital。