首页 >出版文学> Elements of Political Economy>第6章
  (3。xvii。9)Itseems,therefore,tobefullyestablished,thatthebusinessofproductionand
  exchange,iflefttochooseitsownchannels,issuretochoosethose,whicharemost
  advantageoustothecommunity。Itissuretochoosethosechannels,inwhichthecommodities,
  whichthecommunitydesirestoobtain,areobtainedwiththesmallestcost。Toobtainthe
  commodities,whichmandesires,andtoobtainthemwiththesmallestcost,isthewholeofthe
  goodwhichthebusinessofproductionandexchange,consideredsimplyassuch,iscalculatedto
  yield。Inwhateverdegree,therefore,thebusinessofproductionandexchangeisforcedoutofthe
  channelsintowhichitwouldgoofitsownaccord,tothatdegreetheadvantagesarisingfrom
  productionandexchangearesacrificed;or,atanyrate,postponedtosomethingelse。Ifthereis
  anycase,inwhichtheyoughttobepostponedtosomethingelse,thatisaquestionofpolitics,
  andnotofpoliticaleconomy。
  (3。xvii。10)Thereisnosubject,uponwhichthepolicyoftherestrictiveandprohibitive
  system
  hasbeenmaintainedwithgreaterobstinacy,andwithagreaterquantityofsophistry,thanthatof
  thetradeincorn。Therecan,however,benodoubt,thatcornneverwillbeimported,unless
  whenitcanbeobtainedfromabroadwithasmallerquantityoflabourthanitcanbeproduced
  withathome。Allthegood,therefore,whichisobtainedfromtheimportationofanycommodity,
  capableofbeingproducedathome,isobtainedfromtheimportationofcorn。Whyshouldthat
  advantagewhich,inthecaseofcorn,owingtothediversitiesofsoilandextentofpopulation,is
  liabletobemuchgreaterthaninthecaseofanyothercommodity,bedeniedtothecommunity?
  (3。xvii。11)Thereasons,uponwhichtheadvocatesforarestrictionofthecorntradechiefly
  supportthemselves,aretwo;neitherisofanyvalue。
  (3。xvii。12)Thefirstis,thatunlessthenationderiveitscornfromitsownsoil,itmay,bythe
  enmityofitsneighbours,bedeprivedofitsforeignsupply,andreducedtothegreatestdistress。
  Thisargumentimpliesanignorancebothofhistory,andofprinciple:Ofhistory,because,in
  pointoffact,thosecountrieswhichhavedependedthemostuponforeigncountriesfortheir
  supplyofcorn,haveenjoyedbeyondallothercountries,theadvantageofasteadyandinvariable
  marketforgrain:Ofprinciple,becauseitfollowsunavoidably,ifwhat,inonecountryisa
  favourable,isinothercountriesanunfavourableseason,thatobtainingagreatpartofitssupply
  fromvariouscountriesisthebestsecurityanationcanhaveagainsttheextensiveanddistressing
  fluctuationswhichthevarietyofseasonsiscalculatedtoproduce。Noristhepolicyinvolvedin
  thisargumentbetterthanthepoliticaleconomy。Itsacrificesarealgood,toescapethechanceof
  achimericalevil:anevilsomuchthelesstobeapprehended,thatthecountry,fromwhich
  anotherderivesitssupplyofcorn,isscarcelylessdependantuponthatothercountryforaventto
  itsproduce,thanthepurchasingcountryisforitssupply。Itwillnotbepretended,thataglutof
  corn,inanycountry,fromthelossofagreatmarket,withthatdeclensionofprice,thatruinof
  thefarmers,andthatdepressionofrents,whichareitsunavoidableconsequences,isan
  immaterialevil。
  (3。xvii。13)Thesecondreason,uponwhichtheadvocatesofthecornmonopolysupport
  themselves,is,that,ifthemerchantsandmanufacturersenjoyincertaincasesthemonopolyof
  thehomesupply,thefarmersandlandlordsaresubjecttoinjustice,whenasimilarmonopolyis
  notbostoweduponthem。Inthefirstplace,itmaybeobserved,that,ifthisargumentisgoodfor
  thegrowersofcorn,itisgoodforeveryotherspeciesofproducerswhatsoever;if,becauseatax
  isimposedupontheimportationofwoollens,ataxoughttobeimposedupontheimportationof
  corn,ataxoughtalsotobeimposedupontheimportationofeverything,whichthecountrycan
  produce;thecountryought,inshort,tohavenoforeigncommerce,exceptinthosearticles
  alone,whichithasnotthemeansofproducing。
  (3。xvii。14)Theargumentmoreoversupposes,thatanextraordinarygainisobtainedbythe
  manufacturer,inconsequenceofhissupposedprotection;andthatacorrespondentevilis
  sustainedbythecorngrower,unlessheisfavouredbyasimilartax。Theignoranceofprinciple
  ispeculiarlyvisibleinthosesuppositions,inneitherofwhichisthereashadowoftruth。
  (3。xvii。15)Themanwhoembarkshiscapitalinthewoollen,oranyothermanufacture,with
  the
  produceofwhichthatoftheforeignmanufacturersisnotallowedtocomeintocompetition,
  doesnot,onthataccount,deriveagreaterprofitfromhiscapital。Hisprofitisnogreaterthan
  thatofthemanwhosecapitalisembarkedintradesopentothecompetitionofalltheworld。All
  thathappensis,thatagreaternumberofcapitalistsfindemploymentinthatbranchof
  manufacture;thataportion,inshort,ofthecapitalistsofthecountryemploythemselvesin
  producingthatparticularspeciesofmanufacture,whowouldotherwisebeemployedin
  producingsomeotherspecies,probablyinproducingsomethingfortheforeignmarket,with
  whichthatcommodity,ifimportedfromtheforeignmanufacturer,mightbebought。
  (3。xvii。16)Asthemanwhohasembarkedhiscapitalinthetrade,whichiscalledprotected,
  derivesnoadditionalprofitfromtheprotection;sothegrowerofcornsustainsnotanypeculiar
  lossorinconvenience。Nothing,therefore,canbeconceivedmoregroundlessthanhisdemandof
  acompensationonthataccount。Themarketforcornisnotdiminishedbecauseataxislaid
  upontheimportationofwoollens;norwouldthatmarketbeenlargedifthetaxweretakenoff。
  Hisbusiness,therefore,isnotintheleastdegreeaffectedbyit。
  (3。xvii。17)Itwouldbeinconsistentwiththeplanofawork,confinedtotheexpositionof
  general
  principles,tolayopenallthefallacies,whichlurkintheargumentsforrestrainingthetradein
  corn。Oneortwo,however,ofthesourcesofdeception,cannotbeleftaltogetherunnoticed。
  (3。xvii。18)Thelandlordendeavourstorepresenthisowncase,andthatofthemanufacturer,
  as
  perfectlysimilar;though,inthecircumstanceswhichconcernthisargument,theyarenotonly
  different,butopposite。Thelandlordalsoendeavourstomixuphisowncasewiththatofthe
  farmer;anduponthesuccessofthatendeavouralmostalltheplausibilityofhispretensions
  depends。Thatnopretensionsaremoreunfounded,maybeseenbyaveryshortprocessof
  reasoning。Thefarmer,asaproducer,requires,likeeveryotherproducer,thatallhisoutgoings
  bereturnedtohim,withthedueprofituponthecapitalwhichheemploys。Thesurplus,which
  thelandyields,overandabovethisreturnandprofit,iswhathepaystohislandlord;andhis
  interestisnotaffectedbythequantityofthatsurplus,whetheritbegreatorsmall。Hisinterest,
  however,isverymuchaffectedbywages;because,inproportionaswagesarelow,hisprofits,
  likeallotherprofits,arehigh。Wagescannotbelow,ifcornisdear。Theinterest,therefore,the
  permanentinterest,oftheclassoffarmers,consists,inhavingcorncheap。Thisorthatindividual
  intheclassmay,thatis,duringthecurrencyofalease,haveaninterestinhighprices;andthe
  reasonoftheexceptionshowsthetruthofthegeneralrule。Theindividual,who,duringthe
  currencyofalease,hasaninterestinhighprices,is,byhislease,converted,toacertainextent,
  intoareceiverofrent。Duringthecontinuanceofhislease,ifpricesrise,hegets,notonlyhis
  duereturnofprofitsasafarmer,butsomethingmore,namely,aportionofwhatistrulyrent,and
  which,butforhislease,wouldhavegonetothelandlord。
  (3。xvii。19)This,then,isthegranddistinction。Thereceiversofrentarebenefitedbyahigh
  price
  ofcorn;theproducersofcorn,assucharenotbenefitedbyit,butthereverse。Thecaseofthe
  farmercorrespondswiththatofthemanufacturer,notwiththatofthelandlord。Thefarmerisa
  producerandcapitalist;themanufacturerisaproducerandcapitalist;andtheyhaveboth
  receivedallthatbelongstothem,whentheircapitalisreplacedwithitsprofits。Thelandlordis
  notaproducer,noracapitalist。Heistheownerofcertainproductivepowersinthesoil;andall
  whichthesoilproducesbelongstohim,afterpayingthecapitalwhichisnecessarytoputthose
  productivepowersinoperation。Itthusappearsthatthecaseofthelandlordispeculiar;thata
  highpriceofcornisprofitabletohim,because,thehighertheprice,thesmalleraportionofthe
  producewillsufficetoreplace,withitsprofits,thecapitalofthefarmer;andalltherestbelongs
  tohimself。Tothefarmer,however,andtoalltherestofthecommunity,itisanevil,bothasit
  tendstodiminishprofits,andasitenhancesthechargetoconsumers。
  SectionXVIII。Colonies(3。xviii。1)Amongtheexpedientswhichhavebeenmadeuseof,toforceintoparticular
  channels
  agreaterquantityofthemeansofproduction,thanwouldhaveflowedintothemoftheirown
  accord;coloniesareasubjectofsufficientimportancetorequireaparticularconsideration。
  (3。xviii。2)Theonlypointofcolonialpolicy,whichitisherenecessarytoconsider,isthatof
  tradewiththecolonies。Andthequestionis,whetheranypeculiaradvantagemaybederived
  fromit。
  (3。xviii。3)Withrespecttocolonies,aswithrespecttoforeigncountries,thepropositionwill,
  doubtless,beadmitted,that,whateveradvantageisderivedfromtradingwiththem,consistsin
  whatisreceivedfromthem,notinwhatissent;becausethat,ifnotfollowedbyareturn,would
  bealtogetherloss。
  (3。xviii。4)Thereturnfromthemiseithermoneyorcommodities。Thereaderisbythistime
  fully
  awarethatacountryderivesnoadvantagefromreceivingmoney,morethanfromreceivingany
  otherspeciesofcommodity。Itisalsoplainthatwherethecolonyhasnotminesoftheprecious
  metal,itcannot,underthemonopolyofthemothercountry,havemoney,oranythingelse,
  besideitsownproductions,tosend。
  (3。xviii。5)Itisneedlesstoconsiderthecaseorfreetradewithacolony,becausethatfalls
  under
  thecaseortradewithanyforeigncountry。
  (3。xviii。6)Themonopoly,whichamothercountrymayreservetoherself,ofthetradewith
  her
  colonies,isoftwosorts。
  (3。xviii。7)Firstofall,shemaytradewithhercolonies,bymeansofanexclusivecompany。
  In
  thiscase,thecolonyhasnopurchaser,towhomsheisallowedtosellanything,butthe
  exclusivecompany;andnootherseller,fromwhomsheisallowedtobuyanything。The
  company,therefore,canmakeherbuy,asdearasitpleases,thegoodswhichthemothercountry
  sendstoher,andsell,ascheapasitpleases,thegoodswhichshesendstothemothercountry。In
  otherwords,thecolonymay,inthesecircumstances,beobligedtogivefortheproduceofa
  certainquantityofthelabourofthemothercountry,amuchgreaterquantityofgoodsthanthe
  mothercountrycouldobtain,withthesamequantity,fromanyothercountry,orfromthecolony
  inastateoffreedom。
  (3。xviii。8)Thecasesofatradeinthesecircumstancesaretwo:thefirst,wherethecolony
  receivesfromthemothercountry,luxuries,comforts:theother,whereshereceivesnecessaries;
  eitherthenecessariesoflife,orthenecessariesofindustry,asiron,&;c。
  (3。xviii。9)Inthatcase,inwhichthecolonyreceivesluxuriesandcomfortsonlyfromthe
  mother
  country,thereisalimittothedegreeinwhichthemothercountryisenabledtoprofitbythe
  labourofthecolony。Thecolonymaydeclinereceivingsuchluxuriesorcomforts,ifobligedto
  sacrificeforthemtoogreataquantityoftheproduceofherlabour,andmaythinkitbetterto
  employthatgreatproportionofherlabour,inprovidingsuchluxuriesandcomfortsasshe
  herselfiscapableofproducing。
  (3。xviii。10)If,however,thecolonyisdependantfornecessariesuponthemothercountry,
  the
  exclusivecompanyexercisesoverthecolonyapoweraltogetherdespotic。Itmaycompelherto
  givethewholeproduceofherlabour,fornomoreofthenecessariesinquestion,thanwhatis
  justsufficienttoenablethepopulationofthecolonytolive。Ifitisthenecessariesoflife,which
  thecolonyreceives,theconclusionisobvious。Ifitiscommodities,suchasiron,andinstruments
  ofiron,withoutwhichherlabourcannotbeproductivelyemployed,theresultispreciselythe
  same。Shemaybemadetopayforthesearticlessomuchofthewholeproduceofherlabour,
  thatnothingbutwhatisnecessarytokeepthepopulationalivemayremain。Itwouldbethe
  interestofthemothercountry,nottolessenthepopulation;because,withthepopulation,the
  producewouldbelessened,andhencethequantityofcommoditieswhichthemothercountry
  couldreceive。
  (3。xviii。11)Instead,however,oftradingwithhercoloniesbymeansofanexclusive
  company,
  themothercountrymayleavethetradeopentoallherownmerchants,onlyprohibitingthe
  colonyfromtradingwiththemerchantsofanyothercountry。Inthiscase,thecompetitionofthe
  merchantsinthemothercountryreducesthepriceofallthearticlesreceivedbythecolony,as
  lowastheycanbeafforded—inotherwords,aslowasinthemothercountryitself,allowance
  beingmadefortheexpenseofcarryingthem。Ifitbesaidthatthecoloniesaffordamarket;I
  reply,thatthecapital,whichsuppliescommoditiesforthatmarket,wouldstillprepare
  commodities,ifthecolonieswereannihilated;andthosecommoditieswouldstillfind
  consumers。Thelabourandcapitalofacountrycannotpreparemorethanthecountrywillbe
  willingtoconsume。Everyindividualhasadesiretoconsume,eitherproductivelyor
  unproductively,whateverhereceives。Everycountry,therefore,containswithinitselfamarket
  forallthatitcanproduce。Thiswillbemadestillmoreevident,whenthesubjectof
  consumption,thecauseandmeasureofmarkets。,comesunderconsideration。Thereis,therefore,
  noadvantagewhatsoeverderived,underfreedomofcompetition,fromthatpartofthetradewith
  acolonywhichconsistsinsupplyingitwithgoods,sincenomoreisgainedbyit,thansuch
  ordinaryprofitsofstockaswouldhavebeengainedifnosuchtradehadexisted。Itis
  neverthelesstruethatthecolonymaylosebysuchatraffic,ifthegoods,whichsheisthus
  compelledtopurchaseofthemothercountry,mighthavebeenpurchasedcheaperinother
  countries。
  (3。xviii。12)Iftherebeanypeculiaradvantage,therefore,tothemothercountry,itmustbe
  derivedfromthecheapnessofthegoods,withwhichthecolonysuppliesher。Itisevident,thatif
  thequantityofgoods,sugar,forexample,whichthecolonysendstothemothercountry,isso
  greatastoglutthemothercountry;thatistosupplyitsdemandbeyondthemeasureofother
  countries,andmakethepriceoftheminthemothercountrylowerthanitisinothercountries,
  themothercountryprofitsbycompellingthecolonytobringitsgoodsexclusivelytohermarket,
  sinceshewouldhavetopayforthemashighasothercountries,ifthepeopleofthecolonywere
  atlibertytosellwherevertheycouldobtainthegreatestprice。
  (3。xviii。13)Thisadvantage,ifdrawnbythemothercountry,wouldbedrawnattheexpense
  of
  thecolony。Infreetrade,bothpartiesgain。Intheadvantageproducedbyforcing,whateveris
  gainedbytheonepartyislostbytheother。Themothercountry,incompellingthecolonytosell
  goodscheapertoherthanshemightsellthemtoothercountries,merelyimposesuponhera
  tribute;notdirect,indeed,butnotthelessrealbecauseitisdisguised。
  (3。xviii。14)Ifanyadvantageisderivedfromrestraining,anyotherwisethanbyanexclusive
  company,thetradewiththecolonies,itmustconsistinforcingthecoloniestoselltononebut
  themothercountry,notinforcingthemtobuyfromnonebutthemothercountry。Agreat
  improvement,therefore,incolonialpolicywouldbe,tothrowopenthesupplyofthecolonies,
  permittingthemtopurchasethegoodswhichtheywant,wherevertheycouldfindthemost
  favourablemarket,onlyrestrainingtheminthesaleoftheirgoods:allowingthemtobuy
  wherevertheypleased,permittingthemtoselltononebutthemothercountry。
  (3。xviii。15)Itisatthesametimetobeobserved,thatifthemerchantsofthemothercountry
  havefreedomtoexportthegoodswhicharederivedfromthecolonies,thepriceofthesegoods
  willberaisedintheirowncountrytothelevelofthepriceinothercountries。Thecompetitionof
  themerchantswill,also,raisethepriceofthegoodstoacorrespondentheightinthecolonies;
  andthusthebenefittothemothercountryislost。
  (3。xviii。16)Treatiesofcommercearesometimesconcluded,forthepurposeoflimitingthe
  freedomoftrade。Onecountrycanbelimitedtoanotherinbuttwoways;eitherinitspurchases,
  oritssales。SupposethatGreatBritainbindssomeothercountrytopurchasecertain
  commoditiesexclusivelyfromher;GreatBritaincanderivenoadvantagefromsuchatreaty。
  Thecompetitionofhermerchantswillmakethemsellthosecommoditiesascheaptothe
  merchantsofthatcountry,astotheirowncountrymen。Theirstockisnotmoreprofitably
  employedthanitwouldbeifnosuchtradeexisted。Therearecasesinwhichacountrymaygain
  bybindinganothercountrytoselltononebutitself。Ifonecountryisboundtosellno
  commoditieswhatsoever,excepttoanotherparticularcountry;thisisthesamecase,exactly,
  withthatofacolonyboundtoselltononebutthemothercountry。Asnofreecountry,however,
  islikelytobinditselftosellnoneofitscommoditiesexcepttooneother,thisisnotacasewhich
  weneedtoregardaspracticableorreal。
  (3。xviii。17)Onecountrymaybinditselftosellexclusivelytoanotherparticularcountry,not
  all
  thearticlesithasforforeignsale,butonlysomeofthem。
  (3。xviii。18)Thesemaybearticleswhichyieldnothing,eveninastateoffreedom,butthe
  ordinaryprofitsofstock;ascloth,hardware,hats,&;c。:ortheymaybearticleswhichyield
  somethingoverandabovetheordinaryprofitsofstock;ascorn,wine,minerals,&;c。which
  are
  thesourceofrent。
  (3。xviii。19)Onecountrycanderivenoadvantagefromcompellinganothertoselltoit,
  exclusively,articlesofthefirstsort。Ifthepricewhichthefavouredcountrypaysforthegoodsis
  notsufficienttoaffordtheordinaryprofitsofstock,theywillnotbeproduced。Ifthepricewhich
  itpaysissufficienttoaffordtheordinaryprofitsofstock,itwould,atthatprice,obtainthe
  goods,withoutanytreatyofrestriction。
  (3。xviii。20)Thecaseisdifferent,wherethegoodsyieldsomething,asrent,ortheprofitsofa
  monopoly,overandabovetheprofitsofstock。Thequantitywhichmaybesentinthiscaseto
  thefavouredcountry,maysinktherethepriceoftherestrictedcommoditylowerthanitisinthe
  neighbouringcountries;andlowerthantherestrictedcountrywould,ifnotunderrestriction,be
  enabledtosellitinthosecountries。Tothisextent,andtothisonly,canonecountrybenefit,by
  confiningthetradeofanothertoitself。Therestrictionmayoperatetoadiminutionoftheprofits
  ofamonopolizedcommodity,oradiminutionofrent。
  (3。xviii。21)Thereisonemodeofpresentingthissubject,whichisapttopuzzleamindnot
  accustomedtotracetheintricaciesofthisscience。
  (3。xviii。22)Supposetwocountries,AandB,ofwhichAisboundbytreaty,orotherwise,to
  receiveallitsshoesfromB,andtoselltoBallitssugars:Suppose,also,thatAcould,ifleftat
  liberty,obtainitsshoes50percent。cheaperfromsomeothercountry;inthatcase,itmayfora
  momentappear,thatB,obtainsthesugarswhichitbuysofA,with50percent。lessofitsown
  labour,thanitwouldifAwereallowedtopurchasewhereitpleased。
  (3。xviii。23)IfBpaidforthesupposedsugarsinshoes,itwould,nodoubt,pay50percent。
  more
  inthecaseofafreetrade。
  (3。xviii。24)Butiftherewereanyotherarticlewithwhichitcouldpurchasethosesugars,and
  whichitcouldaffordascheapasanyothercountry,itwouldlosenothinginthecaseofafree
  trade;itwouldpurchasethesamequantityofsugarwiththeproduceofthesamequantityof
  labourasbefore;only,thatproducewouldbe,notshoes,butsomeotherarticle。
  (3。xviii。25)ThattherewouldbearticleswhichBcouldaffordascheapasanyothercountry,
  is
  certain,becauseotherwiseitcouldhavenoforeigntrade。
  (3。xviii。26)Itmaybesaid,however,thatthoughBmighthavearticleswhichitcouldsellas
  cheapasothercountries,theymightnotbeindemandinthecountrywhichproducedthesugars。
  Butifshoesonlywereindemandinthecolonies,thoseotherarticlescouldpurchaseshoes
  wheretheywerecheapest;andthusobtainthesamequantityofsugar,inthefree,asinthe
  restrictedstateofthetrade。
  Chapter4。Consumption(4。1)Ofthefoursetsofoperations,Production,Distribution,Exchange,andConsumption,
  whichconstitutethesubjectofPoliticalEconomy,thefirstthreearemeans。Nomanproduces
  forthesakeofproducing,andnothingfarther。Distribution,inthesamemanner,isnot
  performedforthesakeofdistribution。Thingsaredistributed,asalsoexchanged,tosomeend。
  (4。2)ThatendisConsumption。Thingsareproducedthattheymaybeconsumed;and
  distributionandexchangeareonlytheintermediateoperationsforbringingthethings,which
  havebeenproduced,intothehandsofthosewhoaretoconsumethem。
  SectionI。OfProductiveandUnproductiveConsumption(4。i。1)OfConsumption,therearetwospecies;thedistinctivepropertiesofwhichitisof
  great
  importancetocomprehend。
  (4。i。2)Theseare,1st,ProductiveConsumption;2dly,UnproductiveConsumption。
  (4。i。3)1。Thatproductionmaytakeplace,acertainexpenditureisrequired。Itisnecessary,
  that
  thelabourershouldbemaintained;thatheshouldbeprovidedwiththeproperinstrumentsofhis
  labour,andwiththematerialsofthecommoditywhichitishisbusinesstoproduce。
  (4。i。4)Whatisthusexpended,forthesakeofsomethingtobeproduced,issaidtobe
  consumed
  productively。
  (4。i。5)Inproductiveconsumption,threeclassesofthingsareincluded。Thefirstis,the
  necessariesofthelabourer,underwhichtermareincludedallthathiswagesenablehimto
  consume,whethertheseconfinehimtowhatisrequiredforthepreservationofexistence,or
  affordhimsomethingforenjoyment。Thesecondclassofthingsconsumedforproductionis
  machinery;includingtoolsofallsorts,thebuildingsnecessaryfortheproductiveoperations,and
  eventhecattle。Thethirdisthematerialsofwhichthecommoditytobeproducedmustbe
  formed,orfromwhichit,mustbederived。Suchistheseedfromwhichthecornmustbe
  produced,theflaxorwoolofwhichthelinenorwoollenclothmustbeformed,thedrugswith
  whichitmustbedyed,orthecoalswhichmustbeconsumedinanyofthenecessaryoperations。
  (4。i。6)Ofthesethreeclassesofthings,itisonlythesecond,theconsumptionofwhichisnot
  completedinthecourseoftheproductiveoperations。Themachineryandbuildings,employedin
  production,maylastforseveralyears;thenecessaries,however,ofthelabourer,andthe
  materials,eitherprimaryorsecondary,ofthecommoditytobeproduced,areallcompletely
  consumed。Evenofthedurablemachinery,thewearandtearamounttoapartialconsumption。
  (4。i。7)2。Thusitis,thatmenconsumeforthesakeofproduction。Theyalsoconsume,
  however,
  withoutproducing,andwithoutanyviewtoproduction。Thewageswhichamanaffordstoa
  ploughman,aregivenforthesakeofproduction;thewageswhichhegivestohisfootmanand
  hisgroom,arenotgivenforthesakeofproduction。Theflaxwhichthemanufacturerpurchases,
  andconvertsintolinen,heconsumesproductively;thewinewhichhepurchases,andusesathis
  table,heconsumesunproductively。Theseinstancesaresufficienttoillustratewhatismeant,
  whenwespeakofunproductiveconsumption。Allconsumption,whichdoesnottakeplacetothe
  endthatanincomeorrevenuemaybederivedfromit,isunproductiveconsumption。
  (4。i。8)Fromthisexplanation,itfollows,thatproductiveconsumptionisitselfameans;itisa
  meanstoproduction。Unproductiveconsumption,ontheotherhand,isnotameans。Thisspecies
  ofconsumptionistheend。This,ortheenjoymentwhichisinvolvedinit,isthegoodwhich
  constitutedthemotivetoalltheoperationsbywhichitwaspreceded。
  (4。i。9)Fromthisexplanation,italsofollows,that,byproductiveconsumption,nothingis
  lost:no
  diminutionismadeoftheproperty,eitheroftheindividual,orofthecommunity;forifonething
  isdestroyed,anotherisbythatmeansproduced。Thecaseistotallydifferentwithunproductive
  consumption。Whateverisunproductivelyconsumed,islost。Whateverisconsumedinthis
  manner,isadiminutionoftheproperty,bothoftheindividualandofthecommunity;because,
  inconsequenceofthisconsumption,nothingwhateverisproduced。Thecommodityperishesin
  theusing,andallthatisderivedisthegood,thepleasure,thesatisfaction,whichtheusingofit
  yields。
  (4。i。10)Thatwhichisproductivelyconsumedisalwayscapital。Thisisapropertyof
  productive
  consumption,whichdeservestobeparticularlyremarked。Amancommencesthemanufacture
  ofclothwithacertaincapital。Partofthiscapitalheallotsforthepaymentofwages;another
  parthelaysoutinmachinery:andwithwhatremainshepurchasestherawmaterialofhiscloth,
  andtheotherarticles,theuseofwhichisrequired,inpreparingitforthemarket。Itthusappears,
  thatthewholeofeverycapitalundergoestheproductiveconsumption。Itisequallyobviousthat
  whateverisconsumedproductivelybecomescapital;forifthemanufacturerofcloth,whose
  capitalwehaveseentobeproductivelyconsumed,shouldsaveaportionofhisprofits,and
  employitinthedifferentkindsofproductiveconsumptionrequiredinhisbusiness,itwould
  performexactlythefunctionsperformedbyhiscapital,andwould,intruth,beanadditionto
  thatcapital。
  (4。i。11)Thewholeofwhattheproductivepowersofthecountryhavebroughtintoexistence,
  in
  thecourseofayear,iscalledthegrossannualproduce。Ofthisthegreaterpartisrequiredto
  replacethecapitalwhichhasbeenconsumed;torestoretothecapitalistwhathehaslaidoutin
  thewagesofhislabourersandthepurchaseofhismaterials,andtoremuneratehimforthewear
  andtearofhismachinery。Whatremainofthegrossproduce,afterreplacingthecapitalwhich
  hasbeenconsumed,iscalledthenetproduce;andisalwaysdistributed,eitherasprofitsof
  stock,orasrent。
  (4。i。12)Thisnetproduceisthefund,fromwhichalladditiontothenationalcapitalis
  commonly
  made。Ifthenetproduceisallconsumedunproductively,thenationalcapitalremainsunaltered。
  Itisneitherdiminishednorincreased。Ifmorethanthenetproduceisconsumedunproductively,
  itistakenfromthecapital;andsofarthecapitalofthenationisreduced。Iflessthanthenet
  produceisunproductivelyconsumed,thesurplusisdevotedtoproductiveconsumption;andthe
  nationalcapitalisincreased。
  (4。i。13)Thoughaveryaccurateconceptionmaythusbeformedofthetwospeciesof
  consumption;andthetwospeciesoflabour;productive,andunproductive;itisnoteasytodraw
  thelinepreciselybetweenthem。Almostallourclassificationsareliabletothisinconvenience。
  Betweenthings,whichdifferthemostwidely,therearealmostalwaysordersofthings,which
  approachbyinsensiblegradations。Wedivideanimalsintotwoclasses,therationaland
  irrational:andnotwoideascanbemoreclearlydistinguished。Yetbeingsmaybefound,of
  whichitwouldbedifficulttosay,towhichofthetwoclassestheybelonged。Inlikemanner,
  thereareconsumers,andlabourers,whomayseem,withsomepropriety,tobecapableofbeing
  ranked,eitherintheproductive,ortheunproductiveclass。Notwithstandingthisdifficulty,itis
  absolutelynecessary,forthepurposesofhumandiscourse,thatclassificationshouldbe
  performed,andthelinedrawnsomewhere。Thismaybedone,withsufficientaccuracybothfor
  scienceand。forpractice。Itischieflynecessarythatthemoreimportantpropertiesoftheobjects
  classifiedshouldbedistinctlymarkedinthedefinitionoftheclass。Itisnotdifficult,afterthis,
  tomakeallowance,inpractice,forthosethingswhichhe,asitwere,upontheconfinesoftwo
  classes;andpartake,insomedegree,ofthepropertiesofboth。
  SectionII。ThatWhichIsAnnuallyProducedIsAnnually
  Consumed(4。ii。1)Fromwhatwehavenowascertainedofthenatureofproductionandconsumption,it
  will
  easilybeseen,thatthewholeofwhatisannuallyproducedisannuallyconsumed;or,thatwhat
  isproducedinoneyear,isconsumedinthenext。
  (4。ii。2)Everything,whichisproduced,belongstosomebody,andisdestinedbytheowners
  to
  someuse。Therearehowever,buttwosortsofuse:thatforimmediateenjoyment,andthatfor
  ultimateprofit。Touseforultimateprofit,istoconsumeproductively。Touseforimmediate
  enjoyment,istoconsumeunproductively。
  (4。ii。3)Wehavejustobserved,thatwhatisusedforultimateprofit,islaidout,as
  expeditiously
  aspossible,inwagesoflabour,machinery,andrawmaterial。Thisisafactofprimary
  importance;andmanyerrorsofthosewhoreasonlooselyinPoliticalEconomy,arisefromthe
  neglectofit。Whateverissavedfromtheannualproduce,inordertobeconvertedintocapital,is
  necessarilyconsumed;becausetomakeitanswerthepurposeofcapital,itmustbeemployedin
  thepaymentofwages,inthepurchaseofrawmaterialtobeworkedintoafinishedcommodity,
  or,lastly,inthemakingofmachines,effectedinlikemannerbythepaymentofwages,andthe
  workingupofrawmaterials。Withrespecttothatpartoftheannualproduce,whichisdestined
  forunproductiveconsumption,thereislessfrequentlyanymistake。Asitwouldbeattendedwith
  alosstolayinagreaterstockofarticlesofthisclassthanisrequired,forimmediateuse,allof
  them,exceptafew,ofwhichthequalityisimprovedbytheirage,arealwaysexpeditiously
  consumed,orputinacourseofconsumption。
  (4。ii。4)Ayearisassumed,inpoliticaleconomy,astheperiodwhichincludesarevolving
  circle
  ofproductionandconsumption。Noperioddoessoexactly。Somearticlesareproducedand
  consumedinaperiodmuchlessthanayear。Inothers,thecircleisgreaterthanayear。Itis
  necessary,fortheendsofdiscourse,thatsomeperiodshouldbeassumedasincludingthiscircle。
  Theperiodofayearisthemostconvenient。Itcorrespondswithonegreatclassofproductions,
  thosederivedfromthecultivationoftheground。Anditiseasy,whenwehaveobtainedformsof
  expression,whichcorrespondaccuratelytothisassumtion,tomodifytheminpracticetothe
  caseofthosecommodities,thecircleofwhoseproductionandconsumptioniseithergreateror
  lessthanthestandardtowhichourgeneralpropositionsareconformed。
  SectionIII。ThatConsumptionIsCo—ExtensiveWith
  Production(4。iii。1)Itrequiresonlyafewexplanationstoshow,thatthisisadirectcorollaryfromthe
  propositionestablishedintheprecedingsection。
  (4。iii。2)Amanproduces,onlybecausehewishestopossess。Ifthecommodity,whichhe
  produces,isthecommoditywhichhedesirestopossess,hestopswhenhehasproducedasmuch
  ashedesires;andhissupplyisexactlyproportionedtohisdemand。Thesavage,whomakeshis
  ownbowandarrows,doesnotmakebowsandarrowsbeyondwhathewishestopossess。
  (4。iii。3)Whenamanproducesagreaterquantityofanycommoditythanhedesiresfor
  himself,
  itcanonlybeononeaccount;namely,thathedesiressomeothercommoditywhichhecan
  obtaininexchangeforthesurplusofwhathehimselfhasproduced。Itseemshardlynecessaryto
  offeranythinginsupportofsonecessaryaproposition;itwouldbeinconsistentwiththeknown
  lawsofhumannaturetosuppose,thatamanwouldtakethetroubletoproduceanythingwithout
  desiringtohaveanything。Ifhedesiresonething,andproducesanother,itisonlybecausethe
  thingwhichhedesirescanbeobtainedbymeansofthethingwhichheproduces,andbetter
  obtained,thanifhehadendeavouredtoproduceithimself。
  (4。iii。4)Afterlabourhasbeendividedanddistributed,toanyconsiderableextent,andeach
  producerconfineshimselftosomeonecommodityorpartofacommodity,asmallportiononly
  ofwhatheproducesisusedforhisownconsumption。Theremainderhedestinesforthepurpose
  ofsupplyinghimwithalltheother’commoditieswhichhedesires;andwheneachmanconfines
  himselftoonecommodityandexchangeswhatheproducesforwhatisproducedbyother
  people,itisfoundthateachobtainsmoreoftheseveralthings,whichhedesires,thanhewould
  haveobtained,hadheendeavouredtoproducethemallforhimself。
  (4。iii。5)Sofarasamanconsumesthatwhichheproduces,thereis,properlyspeaking,
  neither
  supplynordemand。Demandandsupply,itisevident,aretermswhichhavereferenceto
  exchange;toabuyerandaseller。Butinthecaseofthemanwhoproducesforhimself,thereis
  noexchange。Heneitherofferstobuyanythingnortosellanything。Hehastheproperty;hehas
  producedit;anddoesnotmeantopartwithit。Ifweapply,byasortofmetaphor,theterms
  demandandsupplytothiscase,itisimplied,intheverytermsofthesupposition,thatthe
  demandandsupplyareexactlyproportionedtooneanother。Asfarthenasregardsthedemand
  andsupplyofthemarket,wemayleavethatportionoftheannualproduce,whicheachofthe
  ownersconsumesintheshapeinwhichheproducesorreceivesit,altogetheroutofthequestion。
  (4。iii。6)Inspeakinghereofdemandandsupply,itisevidentthatwespeakofaggregates。
  When
  wesayofanyparticularnation,atanyparticulartime,thatitssupplyisequaltoitsdemand,we
  donotmeaninanyonecommodity,oranytwocommodities。Wemean,thattheamountofits
  demand,inallcommoditiestakentogether,isequaltotheamountofitssupplyinall
  commoditiestakentogether。Itmayverywellhappen,notwithstandingthisequalityinthe
  generalsumofdemandsandsupplies,thatsomeonecommodityorcommoditiesmayhavebeen
  producedinaquantityeitheraboveorbelowthedemandforthoseparticularcommodities。
  (4。iii。7)Twothingsarenecessarytoconstituteademand。Theseare,1st,awishforthe
  commodity;2dly,anequivalenttogiveforit。Ademandmeansthewilltopurchase,andthe
  meansofpurchasing。Ifeitheriswanting,thepurchasedoesnottakeplace。Anequivalentisthe
  necessaryfoundationofalldemand。Itisinvainthatamanwishesforcommodities,ifhehas
  nothingtogiveforthem。Theequivalentwhichamanbringsistheinstrumentofdemand。The
  extentofhisdemandismeasuredbytheextentofhisequivalent。Thedemandandtheequivalent
  areconvertibleterms,andtheonemaybesubstitutedfortheother。Theequivalentmaybecalled
  thedemand,andthedemandtheequivalent。
  (4。iii。8)Wehavealreadyseen,thateveryman,whoproduces,hasawishforother
  commodities,
  thanthosewhichhehasproduced,totheextentofallthathebringstomarket。Anditisevident,
  thatwhateveramanhasproduced,anddoesnotwishtokeepforhisownconsumption,isa
  stockwhichhemaygiveinexchangeforothercommodities。Hiswill,therefore,topurchase,
  andhismeansofpurchasing,inotherwords,hisdemand,isexactlyequaltotheamountofwhat
  hehasproducedanddoesnotmeantoconsume。
  (4。iii。9)Buteachmancontributestothegeneralsupplythewholeofwhathehasproduced
  and
  doesnotmeantoconsume。Inwhatevershapeanypartoftheannualproducehascomeintohis
  hands,ifbeproposestoconsumenopartofithimself,hewishestodisposeofthewhole;and
  thewhole,therefore,becomesmatterofsupply:ifheconsumesapart,hewishestodisposeof
  alltherest,andalltherestbecomesmatterofsupply。
  (4。iii。10)Aseveryman’sdemand,therefore,isequaltothatpartoftheannualproduce,orof
  the
  propertygenerally,whichhehastodisposeof,andeachman’ssupplyisexactlythesamething,
  thesupplyanddemandofeveryindividualareofnecessityequal。
  (4。iii。11)Demandandsupplyaretermsrelatedinapeculiarmanner。Acommoditywhichis
  supplied,isalways,atthesametime,acommoditywhichistheinstrumentofdemand。A
  commoditywhichistheinstrumentofdemand,isalways,atthesametime,acommodityadded
  tothestockofsupply。Everycommodityisalways,atoneandthesametime,matterofdemand,
  andmatterofsupply。Oftwomenwhoperformanexchange,theonedoesnotcomewithonlya
  supply,theotherwithonlyademand;eachofthemcomeswithbothademandandasupply。The
  supply,whichhebrings,istheinstrumentofhisdemand;andhisdemandandsupplyareof
  courseexactlyequaltooneanother。
  (4。iii。12)Butifthedemandandsupplyofeveryindividualarealwaysequaltooneanother,
  the
  demandandsupplyofalltheindividualsinthenation,takenaggregately,mustbeequal。
  Whatever,therefore,betheamountoftheannualproduce,itnevercanexceedtheamountofthe
  annualdemand。Thewholeoftheannualproduceisdividedintoanumberofshares,equalto
  thatofthepeopletowhomitisdistributed。Thewholeofthedemandisequaltoasmuchofthe
  wholeofthesharesastheownersdonotkeel)fortheirownconsumption。Butthewholeofthe
  sharesisequaltothewholeoftheproduce。Thedemonstration,therefore,iscomplete。
  (4。iii。13)Howcompletesoeverthedemonstrationmayappeartobe,thatthedemandofa
  nation
  mustalwaysbeequaltoitssupply,andthatitnevercanbewithoutamarketsufficiently
  enlargedforthewholeofitsproduce,thispropositionisseldomwellunderstood,andis
  sometimesexpresslycontradicted。
  (4。iii。14)Theobjectionisraiseduponthisfoundation,thatcommoditiesareoftenfoundto
  be
  tooabundantfordemand。
  (4。iii。15)Thematteroffactisnotdisputed。Itwilleasily,however,beseen,thatitaffectsnot
  the
  certaintyofthepropositionwhichitisbroughttooppugn。
  (4。iii。16)Thoughitbeundeniable,thatthedemand,whicheverymanbrings,isequaltothe
  supply,whichhebrings,hemaynotfindinthemarketthesortofpurchaser,whichhewants。No
  manmayhavecomedesiringthatsortofcommodity,ofwhichhehastodispose。Itisnotthe
  lessnecessarilytrue,thathecamewithademandequaltohissupply;forhewantedsomething
  inreturnforthegoodswhichhebroughtItmakesnodifferencetosay,thatperhapsheonly
  wantedmoney;formoneyisitselfgoods;and,besides,nomanwantsmoneybutinordertolay
  itout,eitherinarticlesofproductive,orarticlesofunproductiveconsumption。
  (4。iii。17)Everymanhavingademandandasupply,bothequal;ifanycommoditybein
  greater
  quantitythanthedemand,someothercommoditymustbeinless。
  (4。iii。18)Ifeverymanhasademandandsupplybothequal,thedemandandsupplyinthe
  aggregatearealwaysequal。Suppose,thatofthesetwoequalquantities,demandandsupply,the
  oneisdividedintoacertainnumberofparts,andtheotherintoasmanyparts,allequal;andthat
  thesepartscorrespondexactlywithoneanother;thatasmanypartsofthedemandasarefor
  corn,justsomanypartsofthesupplyareofcorn;asmanyoftheoneasareforcloth,somanyof
  theotherareofcloth,andsoon:itisevident,inthiscase,thattherewillbenoglutofanything
  whethertheamountoftheannualproducebegreatorsmall。Letusnextsuppose,thatthisexact
  adaptationtooneanotherofthepartsofdemandandsupplyisdisturbed;letussupposethat,the
  demandforclothremainingthesame,thesupplyofitisconsiderablyincreased:therewillof
  coursebeaglutofcloth,becausetherehasbeennoincreaseofdemand。Buttotheverysame
  amounttheremustofnecessitybeadeficiencyofotherthings;fortheadditionalquantityof
  cloth,whichhasbeenmade,couldbemadebyonemeansonly,bywithdrawingcapitalfromthe
  productionofothercommodities,andtherebylesseningthequantityproduced。Butifthe
  quantityofanycommodityisdiminished,ademandequaltothegreaterquantityremaining,the
  quantityofthatcommodityisdefective。Itis,therefore,impossible,thatthereshouldeverbein
  anycountryacommodityorcommoditiesinquantitygreaterthanthedemand,withoutthere
  being,toanequalamount,someothercommodityorcommoditiesinquantitylessthanthe
  demand。
  (4。iii。19)Theeffects,whichareproduced,inpractice,bythewantofadaptationintheparts
  of
  demandandsupply,arefamiliar。Thecommodity,whichhappenstobeinsuperabundance,
  declinesinprice;thecommodity,whichisdefectiveinquantity,rises。Thisisthefluctuationof
  themarket,whicheverybodysufficientlyunderstands。Thelownessoftheprice,inthearticle
  whichissuperabundant,soonremoves,bythediminutionofprofits,aportionofcapitalfrom
  thatlineofproduction:Thehighnessofprice,inthearticlewhichisscarce,invitesaquantityof
  capitaltothatbranchofproduction,tillprofitsareequalized,thatis,tillthedemandandsupply
  areadaptedtooneanother。
  (4。iii。20)Thestrongestcase,whichcouldbeput,infavourofthesuppositionthatproduce
  may
  increasefasterthanconsumption,wouldundoubtedlybethat,inwhich,everymanconsuming
  nothingbutnecessaries,alltherestoftheannualproduceshouldbesaved。Thisis,indeed,an
  impossiblecase,becauseitisinconsistentwiththelawsofhumannature。Theconsequencesof
  it,however,arecapableofbeingtraced;andtheyservetothrowlightupontheargument,by
  whichtheconstantequalityhasbeendemonstratedofproduceanddemand。
  (4。iii。21)Insuchacase,whatcametoeveryman’sshareoftheannualproduce,batinghis
  own
  consumptionofnecessaries,wouldbedevotedtoproduction。Allproductionwouldofcoursebe
  directedtorawproduceandafewofthecoarsermanufactures;becausethesearethearticlesfor
  whichalonetherewouldbeanydemand。Aseveryman’sshareoftheannualproduce,batinghis
  ownconsumptionwouldbelaidoutforthesakeofproduction,itwouldbelaidoutinthe
  articlessubservienttotheproductionofrawproduceandthecoarsermanufactures。Butthese
  articlesarepreciselyrawproduceandafewofthecoarsermanufacturesthemselves。Everymans
  demand,therefore,wouldconsistwhollyinthesearticles;butthewholeofthesupplywould
  consistalsointhesamearticles。Andithasbeenproved,thattheaggregatedemandand
  aggregatesupplyareequalofnecessity;becausethewholeortheannualproduce,batingthe
  portionconsumedbytheshareholders,isbroughtastheinstrumentofdemand;andthewholeof
  theannualproduce,withthesameabatement,isbroughtassupply。
  (4。iii。22)Itappears,therefore,byaccumulatedproof,thatproductioncanneverbetoorapid
  for
  demand。Productionisthecause,andthesolecause,ofdemand。Itneverfurnishessupply,
  withoutfurnishingdemand,bothatthesametime,andbothtoanequalextent。
  (4。iii。23)Ithasbeenobjected,that,forthevalidityoftheargumentitisnecessaryto
  suppose,
  "thatnewtastesandnewwantsspringupwiththenewcapital。"Asinglereflectionwill,Ithink,
  makeitclearthatthetaste,andwants,inquestion,areessentiallyandnecessarilyimpliedinthe
  veryexistenceofthecapital。
  (4。iii。24)Thenewcapitalisalltobelaidoutinthepurchaseofsomething,accordingtothe
  plansoftheowner。Itisofinfiniteimportancetoobserve,thateverycreationofcapitalisthe
  creationofademand。Itissurprisingthatthismaterialpointissofrequentlyoverlooked。It
  seemstobelittlelessthanselfevident,andifadmitted,itcarriesinitselfananswertoevery
  argumentthathasbeen,orthatcanbeadduced,infavouroftheglut。
  (4。iii。25)Whatisitthatwemean,whenwesaythedemandofanation,speakingofthe
  aggregate,andincludingadefinitecircleofproductionandconsumption,suchasthatofayear?
  Dowe,orcanwe,meananythingbutitspowerofpurchasing?Andwhatisitspowerof
  purchasing?Ofcourse,thegoodswhichcometomarket。What,ontheotherhand,isitwemean,
  when,speakinginlikemanneraggregately,andincludingthesamecircle,wesaythesupplyof
  thenation?Dowe,orcanwemeananything,butthegoodswhichcometomarket?The
  conclusionistooobvioustoneedtobedrawn。
  (4。iii。26)Whatproducestheconfusionofideas,whichsooftenoccursintheconsideration
  of
  thissubject,istheglut,whichmay,anddoestakeplace,ofparticularcommodities。Doesit
  followfromthis,thattherecanbeaglutofcommoditiesintheaggregate,whenitisnecessarily
  truethattherecannotbeanaggregatesupplywithoutanequalaggregatedemand,equalbothin
  quantityandinvalue?
  (4。iii。27)Totheargument,whichshowsthattothesamedegree,inwhichoneormore
  commoditiesmaybeinsuchabundanceasexceedsthedemand,someothercommoditiesmust
  fallshortofthedemand,ithasbeenreplied,thatthecommoditieswhicharesuppliedin
  superabundancefallinvalue,thatthisinvolvesalltheeviloftheglut,andisthereforeareplyto
  thewholeoftheargumentwhichdeniesitsexistence。
  (4。iii。28)Thisisareplyinwordsonly。Whatismaintainedinmyargumentis,thattherecan
  be
  noglutofcommoditiesintheaggregate,thoughtheremaybeinparticularinstances。Theanswer
  madetomeisthattheremaybeaglutinparticularinstances。
  (4。iii。29)Intheverywordsofthepretendedreply,thecertaintyofthedisputedfactis
  admitted。
  Thevalue,itissaid,ofthegoods,whichareinthestateofsuperabundance,falls。Ifthisisnota
  playupontheword,itimpliestheverythingwhichitisbroughttodispute,thatwheneverone
  setofgoodsissuppliedabovethedemand,anotherissuppliedbelowthedemand。
  (4。iii。30)Whatisitthatisnecessarilymeant,whenwesaythatthesupplyandthedemand
  are
  accommodatedtooneanother?Itisthis:thatgoodswhichhavebeenproducedbyacertain
  quantityoflabour,exchangeforgoodswhichhavebeenproducedbyanequalquantityoflabour。
  Letthispropositionbedulyattendedto,andalltherestisclear。
  (4。iii。31)Thus,ifapairofshoesisproducedwithanequalquantityoflabourasahat,so
  longas
  ahatexchangesforapairofshoes,solongthesupplyanddemandareaccommodatedtoone
  another。Ifitshouldsohappenthatshoesfellinvalue,ascomparedwithhats,whichisthesame
  thingashatsrisinginvaluecomparedwithshoes,thiswouldimplythatmoreshoeshadbeen
  broughttomarket,ascomparedwithhats。Shoeswouldthenbeinmorethanthedueabundance。
  Why?Becauseinthemtheproduceofacertainquantityoflabourwouldnotexchangeforthe
  produceofanequalquantity。Butfortheverysamereasonhatswouldbeinlessthanthedue
  abundance,becausetheproduceofacertainquantityoflabourinthemwouldexchangeforthe
  produceofmorethananequalquantityinshoes。
  (4。iii。32)Whatistrueofanyoneinstanceistrueofanynumberofinstances。Itistherefore
  universallytrue,that,astheaggregatedemandandaggregatesupplyofanationnevercanbe
  unequaltooneanother,sotherenevercanbeasuperabundantsupplyinparticularinstances,and
  henceafallinexchangeablevaluebelowthecostofproduction,withoutacorresponding
  deficiencyofsupply,andhenceariseinexchangeablevalue,beyondcostofproduction,inother
  instances。Thedoctrineoftheglut,therefore,seemstobedisprovedbyreasoningperfectly
  conclusive。
  (4。iii。33)Letusrecapitulatethepoints。Aglut,asitissupposedinthisdoctrine,namelyan
  excessofproductionintheaggregate,cantakeplaceonlybyacontinuedincreaseofproduction。
  Letusimaginethatwehavejustcometothesupposedpoint,when,thesupplybeingfull,any
  additionalproductionwillbesomuchofglut。Theadditionalproductiontakesplace,andcomes
  tomarket。Whatistheconsequence?Thisnewproductseeksanequivalent。Thatistosay,itisa
  newdemand。Howthenisitpossibletosaythateverynewsupplyisaglut,whenanewdemand
  iscreatedequaltoit?Itisobviouslynugatorytosay,thatthisnewsupplymaynotfind
  purchasers,orthenewdemandmaynotfindthecommoditiestowhichitisdirected;forthisis
  onlytosaythatinparticularinstancestheremay,frommiscalculation,besuperabundanceor
  defect。Thenaturaleffects,insuchacase,maybeeasilytraced,andtheyafforddecisive
  evidence。Thecommodities,ofwhichtheadditionalproductionconsists,maybenaturally
  supposedtoconsistofsomeofthesortswhicharepreviouslyinthemarket。Bysupposition,the
  goodspreviouslyinthemarketwereaccommodatedtooneanother,nospeciesbeingeitherin
  defective,orsuperabundantsupply。Theadditionwhichismadetosomesortsofthesegoods,by
  thenewproduction,wouldrenderthemsuperabundant,iftherewasnotanewdemandcreated。
  Thesegoodswouldfallinexchangeablevalueascomparedwithothers,otherswouldrisein
  exchangeablevalueascomparedwiththem。Butthereisanewdemandcreated;fortheownerof
  thenewproduce,ashehascomeintothemarkettosellgoodsofsomekinds,sohehascometo
  buygoodsofsomeotherkinds。Asthesupply,whichhebrought,ofcertainkindsofgoods
  tendedtoreducetheirvalue,sothedemand,whichhebrings,forotherkindstendstoincrease
  theirvalue。Theresultis,thatnowtherearecertainkindsofgoods,whichitislessprofitable
  thanusualtoproduce;others,whichitismoreprofitablethanusualtoproduce:andthisisan
  inequality,whichtendsimmediatelytocorrectitself。Thisisthemode,inwhicheveryaddition
  ismadetotheproductionsofacountry,anditisamode,whichisevidentlythesameatevery
  stageoftheprogress,fromthegreatestdefect。tothegreatestexcess,ofnationalriches。It
  commonly,ofcourse,happens,thattheman,whobringsintothemarketanadditionofproduce,
  endeavourstobringitingoodsthatareindefectivesupply,andtopurchasegoodsthatarein
  superabundantsupply;andthestateofthemarketgenerallyenableshimtodoso:sothatan
  additionofproducebroughtintothemarketmayjustasoftenremedyaglutasbeinanydegree
  thecauseofit。
  (4。iii。34)ThedoctrineofMr。Malthus,onthesubjectoftheglut,seems,atlast,toamountto
  this:thatifsavingweretogoonatacertainrate,capitalwouldincreasefasterthanpopulation;
  andthatifcapitaldidsoincrease,wageswouldbecomeveryhigh,andprofitswouldsustaina
  correspondingdepression。Butthis,ifitwereallallowed,doesnotprovetheexistenceofaglut;
  itonlyprovesanotherthing,namely,thattherewouldbehighwagesandlowprofits。Whether
  suchanincreaseofcapital,scarcelycomingwithintherangeevenofarationalsupposition,
  wouldbeagoodthingoranevilthing,itwouldinfalliblyproduceitsownremedy,asthepower,
  ofcapitaltoincreaseisdiminishedwiththediminutionofprofits。
  (4。iii。35)Mr。Malthusfurthersays,thatthehighwagesthusproducedwouldgenerate
  idlenessin
  theclassoflabourers。Thepredictionmaybedisputed;but,allowedtobecorrect,whatisits
  import?If,wagescontinuingthesame,lessworkisdone,thisishigherpayforanequalquantity
  oflabour;itisthereforethesamethingasariseofwages。Itwouldmerelyacceleratethat
  diminutionofprofits,whichmustintimeretardandfinallystoptheincreaseofcapital,in
  consequenceofwhichwageswouldnaturallyfall。This,therefore,isnotadifferentobjection
  fromtheformer;itispreciselythesameobjection,onlyinadifferentform。
  (4。iii。36)Mr。Malthus,thus,totallyfailingtoproveaglut,evenfromacontinuedincreaseof
  capitalgreaterthanthegreatestincreaseofpopulation,substitutes,forargumentstoprovethat
  effect,argumentstoprovecertainothereffects。
  (4。iii。37)Hesays,thatweretheannualproducethustogoonincreasing,itsvaluewouldbe
  diminished。Butthisismerelyaplayupontheword。Hesays,Icallthevalueofacommoditythe
  numberofdays’wagesitisequalto。Ifthenwagesaremorethandoubled,thoughyoudoublethe
  amountofyourcommodities,andhavetwiceasmuchofeverything,yetyouwillhaveless
  value。Anarbitrarychange,however,inthemeaningofawordprovesnothing。Thefacts,and
  theirrelations,remainthesome,whateverMr。Malthus,orI,maychoosetocallthem。Thefacts
  stillaremerelythese,thatsocietywouldhavethesupposedamountofcommodities,andallits
  benefits,andthatwageswouldbeveryhigh。
  (4。iii。38)Mr。Malthusfurthersays,thatthisrapidincreaseofcapitalwouldtendtodiminish
  production。Thatonwhichtheincreaseofproductiondepends,istheincreaseofitstwo
  instruments,capitalandlabourers。BytheverysuppositionwhichMr。Malthushimselfhas
  made,andonwhichheisreasoning,bothoftheseinstrumentsareincreasingattheirmostrapid
  possiblerate。Itseemsthereforeamostextraordinarysupposition,thatproductionshouldnotbe
  increasingatitsmostrapidpossiblerate。
  (4。iii。39)Ifitbetrue,asMr。Malthussupposes,thatthehighwagessupposedwould
  diminish
  labour,itwillbetruethatlessworkwillbedone,andlessproductioneffected,thanifeveryman
  workedmore。Letussupposethatthediminutionoflabourgoesongradually,aswagesincrease,
  tillatlasteachmandoesonlyhalfasmuchworkasbefore,whatthenistheconsequence?
  Merelythis,thatifpopulationisgoingonatitsgreatestpossiblerate,doublingitselfintwenty
  years,therewillnotbeagreaterincreaseofproductionfromlabour,thantherewouldbeifit
  doubleditselfonlyinfortyyears,andeachmanperformedtwiceasmuchwork。Thiswouldstill
  beamorerapidratethanthatatwhichcapitalincreases,exceptinsomeveryrareand
  extraordinarycircumstances。But,iflabourweresoverydear,andcapitalsoabundant,the
  consequencewouldbe,thataslittleaspossibleofproductionwouldbeperformedbyman’s
  labour,asmuchaspossiblebymachineryandcattle。Ingenuitywouldberackedtofindthe
  meansofsupersedingthemostcostlyinstrument。Machineswouldbemultipliedandimproved
  withoutend;andamuchgreaterproportionoftheannualproducewouldbetheresultofcapital,
  amuchlesstheresultofimmediatelabour。Thediminutionofproductionwouldnotthereforebe
  nearlyinproportiontothediminutionofeachman’slabour。
  (4。iii。40)Thesupposedeffectsthereforearereallyofnoimportance,otherwiseitmightstill
  be
  questionedhowfartheinferenceiswarranted,thathighwagestendtodiminishindustry。
  Experienceseemstobeveryfullontheoppositeside。Wherewagesareexcessivelylow,asin
  Ireland,thereisnoindustry;whereexcessivelyhigh,asintheAmericanUnitedStates,thereis
  thegreatest。WhatdoesMr。Malthushimselfmeanbythestimuluswhichhesaysisgivento
  industrybyanenlargementofthemarket?
  SectionIV。InWhatMannerGovernmentConsumes(4。iv。1)Allconsumptioniseitherbyindividuals,orbythegovernment。Havingtreatedofthe
  consumptionofindividuals,itonlyremainsthatwetreatofthatwhichhasgovernmentforits
  cause。
  (4。iv。2)Althoughtheconsumptionbygovernment,asfarasreallynecessary,isofthe
  highest
  importance,itisnot,unlessveryindirectly,subservienttoproduction。Thatwhichisconsumed
  bygovernment,insteadofbeingconsumedascapital,andreplacedbyaproduce,isconsumed,
  andproducesnothing。Thisconsumptionis,indeed,thecauseofthatprotection,underwhichall
  productionhastakenplace;butifotherthingswerenotconsumedinawaydifferentfromthatin
  whichthingsareconsumedbygovernment,therewouldbenoproduce。Thesearereasonsfor
  placingtheexpenditureofgovernmentundertheheadofunproductiveconsumption。
  (4。iv。3)Therevenueofgovernmentmustbederivedfromrent,fromprofitsofstock,orfrom
  wagesoflabour。