However，weonourpartbelieveourselvesabletoprovethat
justthiszealtoputtheimportantdiscovery\'divisionoflabour\'
inanadvantageouslight，hashinderedAdamSmithfromfollowingup
theidea\'productivepower\'whichhasbeenexpressedbyhiminthe
introduction，andalsofrequentlyafterwards，althoughmerely
incidentallyandfromexhibitinghisdoctrinesinamuchmore
perfectform。Bythegreatvaluewhichheattachedtohisidea
\'divisionoflabour\'hehasevidentlybeenmisledintorepresenting
labouritselfasthe\'fund\'ofallthewealthofnations，although
hehimselfclearlyperceivesandalsostatesthatthe
productivenessoflabourprincipallydependsonthedegreeofskill
andjudgmentwithwhichthelabourisperformed。Weask，canitbe
deemedscientificreasoningifweassignasthecauseofa
phenomenonthatwhichinitselfistheresultofanumberofdeeper
lyingcauses？Itcannotbedoubtedthatallwealthisobtainedby
meansofmentalandbodilyexertionslabour，butyetfromthat
circumstancenoreasonisindicatedfromwhichusefulconclusions
maybedrawn；forhistoryteachesthatwholenationshave，inspite
oftheexertionsandofthethriftoftheircitizens，falleninto
povertyandmisery。Whoeverdesirestoknowandinvestigatehowone
nationfromastateofpovertyandbarbarismhasattainedtooneof
wealthandprosperity，andhowanotherhasfallenfromacondition
ofwealthandwell-beingintooneofpovertyandmisery，has
always，afterreceivingtheinformationthatlabouristhecauseof
wealthandidlenessthecauseofpovertyaremarkwhichKing
SolomonmadelongbeforeAdamSmith，toputthefurtherquestion，
whatarethecausesoflabour，andwhatthecausesofidleness？
Itwouldbemorecorrecttodescribethelimbsofmenthe
head，hands，andfeetasthecausesofwealthweshouldthusat
leastapproachfarnearertothetruth，andthequestionthen
presentsitself，whatisitthatinducestheseheads，arms，and
handstoproduce，andcallsintoactivitytheseexertions？What
elsecanitbethanthespiritwhichanimatestheindividuals，the
socialorderwhichrenderstheirenergyfruitful，andthepowersof
naturewhichtheyareinapositiontomakeuseof？Themoreaman
perceivesthathemustprovideforthefuture，themorehis
intelligenceandfeelingsincitehimtosecurethefutureofhis
nearestconnections，andtopromotetheirwell-being；themorehe
hasbeenfromhisyouthaccustomedtoforethoughtandactivity，the
morehisnoblerfeelingshavebeendeveloped，andbodyandmind
cultivated，thefinerexamplesthathehaswitnessedfromhis
youth，themoreopportunitieshehashadforutilisinghismental
andbodilypowersfortheimprovementofhiscondition，alsothe
lesshehasbeenrestrainedinhislegitimateactivity，themore
successfulhispastendeavourshavebeen，andthemoretheirfruits
havebeensecuredtohim，themorehehasbeenabletoobtain
publicrecognitionandesteembyorderlyconductandactivity，and
thelesshismindsuffersfromprejudices，superstition，false
notions，andignorance，somuchthemorewillheexerthismindand
limbsfortheobjectofproduction，somuchthemorewillhebe
abletoaccomplish，andsomuchthebetterwillhemakeuseofthe
fruitsofhislabour。However，mostdependsinalltheserespects
ontheconditionsofthesocietyinwhichtheindividualhasbeen
broughtup，andturnsuponthis，whetherscienceandartsflourish，
andpublicinstitutionsandlawstendtopromotereligious
character，moralityandintelligence，securityforpersonandfor
property，freedomandjustice；whetherinthenationallthe
factorsofmaterialprosperity，agriculture，manufactures，and
trade，havebeenequallyandharmoniouslycultivated；whetherthe
powerofthenationisstrongenoughtosecuretoitsindividual
citizensprogressinwealthandeducationfromgenerationto
generation，andtoenablethemnotmerelytoutilisethenatural
powersoftheirowncountrytotheirfullestextent，butalso，by
foreigntradeandthepossessionofcolonies，torenderthenatural
powersofforeigncountriesserviceabletotheirown。
AdamSmithhasonthewholerecognisedthenatureofthese
powerssolittle，thathedoesnotevenassignaproductive
charactertothementallaboursofthosewhomaintainlawsand
order，andcultivateandpromoteinstruction，religion，science，
andart。Hisinvestigationsarelimitedtothathumanactivity
whichcreatesmaterialvalues。Withregardtothis，hecertainly
recognisesthatitsproductivenessdependsonthe\'skilland
judgment\'withwhichitisexercised；butinhisinvestigationsas
tothecausesofthisskillandjudgment，hedoesnotgofarther
thanthedivisionoflabour，andthatheillustratessolelyby
exchange，augmentationofmaterialcapital，andextensionof
markets。Hisdoctrineatoncesinksdeeperanddeeperinto
materialism，particularism，andindividualism。Ifhehadfollowed
uptheidea\'productivepower\'withoutallowinghismindtobe
dominatedbytheideaof\'value，\'\'exchangeablevalue，\'hewould
havebeenledtoperceivethatanindependenttheoryofthe
\'productivepower，\'mustbeconsideredbythesideofa\'theoryof
values\'inordertoexplaintheeconomicalphenomena。Buthethus
fellintothemistakeofexplainingmentalforcesfrommaterial
circumstancesandconditions，andtherebylaidthefoundationfor
alltheabsurditiesandcontradictionsfromwhichhisschoolaswe
proposetoprovesuffersuptothepresentday，andtowhichalone
itmustbeattributedthatthedoctrinesofpoliticaleconomyare
thosewhicharetheleastaccessibletothemostintelligentminds。
ThatSmith\'sschoolteachesnothingelsethanthetheoryofvalues，
isnotonlyseenfromthefactthatitbasesitsdoctrine
everywhereontheconceptionof\'valueofexchange，\'butalsofrom
thedefinitionwhichitgivesofitsdoctrine。ItissaysJ。B。
Saythatsciencewhichteacheshowriches，orexchangeablevalues，
areproduced，distributed，andconsumed。Thisisundoubtedlynot
thesciencewhichteacheshowtheproductivepowersareawakened
anddeveloped，andhowtheybecomedepressedanddestroyed。
M\'Cullochcallsitexplicitly\'thescienceofvalues，\'andrecent
Englishwriters\'thescienceofexchange。\'
Examplesfromprivateeconomywillbestillustratethe
differencebetweenthetheoryofproductivepowersandthetheory
ofvalues。
Letussupposethecaseoftwofathersoffamilies，bothbeing
landedproprietors，eachofwhomsavesyearly1，000thalersandhas
fivesons。Theoneputsouthissavingsatinterest，andkeepshis
sonsatcommonhardwork，whiletheotheremployshissavingsin
educatingtwoofhissonsasskilfulandintelligentlandowners，
andinenablingtheotherthreetolearnatradeaftertheir
respectivetastes；theformeractsaccordingtothetheoryof
values，thelatteraccordingtothetheoryofproductivepowers。
Thefirstathisdeathmayprovemuchricherthanthesecondin
mereexchangeablevalue，butitisquiteotherwiseasrespects
productivepowers。Theestateofthelatterisdividedintotwo
parts，andeverypartwillbytheaidofimprovedmanagementyield
asmuchtotalproduceasthewholedidbefore；whiletheremaining
threesonshavebytheirtalentsobtainedabundantmeansof
maintenance。Thelandedpropertyoftheformerwillbedividedinto
fiveparts，andeverypartwillbeworkedinasbadamannerasthe
wholewasheretofore。Inthelatterfamilyamassofdifferent
mentalforcesandtalentsisawakenedandcultivated，whichwill
increasefromgenerationtogeneration，everysucceedinggeneration
possessingmorepowerofobtainingmaterialwealththanthe
precedingone，whileintheformerfamilystupidityandpoverty
mustincreasewiththediminutionofthesharesinthelanded
property。Sotheslaveholderincreasesbyslave-breedingthesumof
hisvaluesofexchange，butheruinstheproductiveforcesof
futuregenerations。Allexpenditureintheinstructionofyouth，
thepromotionofjustice，defenceofnations，&c。isaconsumption
ofpresentvaluesforthebehoofoftheproductivepowers。The
greatestportionoftheconsumptionofanationisusedforthe
educationofthefuturegeneration，forpromotionandnourishment
ofthefuturenationalproductivepowers。
TheChristianreligion，monogamy，abolitionofslaveryandof
vassalage，hereditabilityofthethrone，inventionofprinting，of
thepress，ofthepostalsystem，ofmoneyweightsandmeasures，of
thecalendar，ofwatches，ofpolice，\'theintroductionofthe
principleoffreeholdproperty，ofmeansoftransport，arerich
sourcesofproductivepower。Tobeconvincedofthis，weneedonly
comparetheconditionoftheEuropeanstateswiththatofthe
Asiaticones。Inorderdulytoestimatetheinfluencewhichliberty
ofthoughtandconsciencehasontheproductiveforcesofnations，
weneedonlyreadthehistoryofEnglandandthenthatofSpain。
Thepublicityoftheadministrationofjustice，trialbyjury，
parliamentarylegislation，publiccontrolofStateadministration，
self-administrationofthecommonaltiesandmunicipalities，liberty
ofthepress，libertyofassociationforusefulpurposes，impartto
thecitizensofconstitutionalstates，asalsototheirpublic
functionaries，adegreeofenergyandpowerwhichcanhardlybe
producedbyothermeans。Wecanscarcelyconceiveofanylaworany
publiclegaldecisionwhichwouldnotexerciseagreaterorsmaller
influenceontheincreaseordecreaseoftheproductivepowerof
thenation。2*Ifweconsidermerelybodilylabourasthecauseof
wealth，howcanwethenexplainwhymodernnationsareincomparably
richer，morepopulous，morepowerful，andprosperousthanthe
nationsofancienttimes？Theancientnationsemployedin
proportiontothewholepopulationinfinitelymorehands，thework
wasmuchharder，eachindividualpossessedmuchmoreland，andyet
themassesweremuchworsefedandclothedthanisthecasein
modernnations。Inordertoexplainthesephenomena，wemustrefer
totheprogresswhichhasbeenmadeinthecourseofthelast
thousandyearsinsciencesandarts，domesticandpublic
regulations，cultivationofthemindandcapabilitiesof
production。Thepresentstateofthenationsistheresultofthe
accumulationofalldiscoveries，inventions，improvements，
perfections，andexertionsofallgenerationswhichhavelived
beforeus；theyformthementalcapitalofthepresenthumanrace，
andeveryseparatenationisproductiveonlyintheproportionin
whichithasknownhowtoappropriatetheseattainmentsofformer
generationsandtoincreasethembyitsownacquirements，inwhich
thenaturalcapabilitiesofitsterritory，itsextentand
geographicalposition，itspopulationandpoliticalpower，have
beenabletodevelopascompletelyandsymmetricallyaspossible
allsourcesofwealthwithinitsboundaries，andtoextendits
moral，intellectual，commercial，andpoliticalinfluenceoverless
advancednationsandespeciallyovertheaffairsoftheworld。
Thepopularschoolofeconomistswouldhaveusbelievethat
politicsandpoliticalpowercannotbetakenintoconsiderationin
politicaleconomy。Sofarasitmakesonlyvaluesandexchangethe
subjectsofitsinvestigations，thismaybecorrect；wecandefine
theideasofvalueandcapital，profit，wages，andrent；wecan
resolvethemintotheirelements，andspeculateonwhatmay
influencetheirrisingorfalling，&c。withouttherebytakinginto
accountthepoliticalcircumstancesofthenation。Clearly，
however，thesemattersappertainasmuchtoprivateeconomyasto
theeconomyofwholenations。Wehavemerelytoconsiderthe
historyofVenice，oftheHanseaticLeague，ofPortugal，Holland，
andEngland，inordertoperceivewhatreciprocalinfluence
materialwealthandpoliticalpowerexerciseoneachother。
Theschoolalsoalwaysfallsintothestrangestinconsistencies
wheneverthisreciprocalinfluenceforcesitselfontheir
consideration。Letushereonlycalltomindtheremarkabledictum
ofAdamSmithontheEnglishNavigationLaws。3*
Thepopularschool，inasmuchasitdoesnotdulyconsiderthe
natureofthepowersofproduction，anddoesnottakeintoaccount
theconditionsofnationsintheiraggregate，disregardsespecially
theimportanceofdevelopinginanequalratioagriculture，
manufacturesandcommerce，politicalpowerandinternalwealth，and
disregardsespeciallythevalueofamanufacturingpowerbelonging
speciallytothenationandfullydevelopedinallitsbranches。It
commitstheerrorofplacingmanufacturingpowerinthesame
categorywithagriculturalpower，andofspeakingoflabour，
naturalpower，capital，&c。ingeneraltermswithoutconsidering
thedifferenceswhichexistbetweenthem。Itdoesnotperceivethat
betweenaStatedevotedmerelytoagricultureandaState
possessingbothagricultureandmanufactures，amuchgreater
differenceexiststhanbetweenapastoralStateandanagricultural
one。Inaconditionofmerelyagriculturalindustry，capriceand
slavery，superstitionandignorance，wantofmeansofculture，of
trade，andoftransport，povertyandpoliticalweaknessexist。In
themerelyagriculturalStateonlytheleastportionofthemental
andbodilypowersexistinginthenationisawakenedanddeveloped，
andonlytheleastpartofthepowersandresourcesplacedby
natureatitsdisposalcanbemadeuseof，whilelittleorno
capitalcanbeaccumulated。
LetuscomparePolandwithEngland：bothnationsatonetime
wereinthesamestageofculture；andnowwhatadifference。
Manufactoriesandmanufacturesarethemothersandchildrenof
municipalliberty，ofintelligence，oftheartsandsciences，of
internalandexternalcommerce，ofnavigationandimprovementsin
transport，ofcivilisationandpoliticalpower。Theyarethechief
meansofliberatingagriculturefromitschains，andofelevating
ittoacommercialcharacterandtoadegreeofartandscience，by
whichtherents，farmingprofits，andwagesareincreased，and
greatervalueisgiventolandedproperty。Thepopularschoolhas
attributedthiscivilisingpowertoforeigntrade，butinthatit
hasconfoundedthemereexchangerwiththeoriginator。Foreign
manufacturesfurnishthegoodsfortheforeigntrade，whichthe
latterconveystous，andwhichoccasionconsumptionofproducts
andrawmaterialswhichwegiveinexchangeforthegoodsinlieu
ofmoneypayments。
If，however，tradeinthemanufacturesoffardistantlands
exercisesadmittedlysobeneficialaninfluenceonouragricultural
industry，howmuchmorebeneficialmusttheinfluencebeofthose
manufactureswhichareboundupwithuslocally，commercially，and
politically，whichnotonlytakefromusasmallportion，butthe
largestportionoftheirrequirementsoffoodandofrawmaterials，
whicharenotmadedearertousbygreatcostsoftransport，our
tradeinwhichcannotbeinterruptedbythechanceofforeign
manufacturingnationslearningtosupplytheirownwants
themselves，orbywarsandprohibitoryimportduties？
Wenowseeintowhatextraordinarymistakesandcontradictions
thepopularschoolhasfalleninmakingmaterialwealthorvalueof
exchangethesoleobjectofitsinvestigations，andbyregarding
merebodilylabourasthesoleproductivepower。
Themanwhobreedspigsis，accordingtothisschool，a
productivememberofthecommunity，buthewhoeducatesmenisa
merenon-productive。Themakerofbagpipesorjews-harpsforsale
isaproductive，whilethegreatcomposersandvirtuososare
non-productivesimplybecausethatwhichtheyplaycannotbe
broughtintothemarket。Thephysicianwhosavesthelivesofhis
patientsdoesnotbelongtotheproductiveclass，butonthe
contrarythechemist\'sboydoesso，althoughthevaluesofexchange
viz。thepillswhichheproducesmayexistonlyforafewminutes
beforetheypassintoavaluelesscondition。ANewton，aWatt，or
aKeplerisnotsoproductiveasadonkey，ahorse，oradraught-ox
aclassoflabourerswhohavebeenrecentlyintroducedby
M\'Cullochintotheseriesoftheproductivemembersofhuman
society。
WemustnotbelievethatJ。B。Sayhasremediedthisdefectin
thedoctrineofAdamSmithbyhisfictionof\'immaterialgoods\'or
products；hehasthusmerelysomewhatvarnishedoverthefollyof
itsresults，butnotraiseditoutofitsintrinsicabsurdity。The
mentalimmaterialproducersaremerelyproductive，accordingto
hisviews，becausetheyareremuneratedwithvaluesofexchange，
andbecausetheirattainmentshavebeenobtainedbysacrificing
valuesofexchange，andnotbecausetheyproduceproductive
powers。4*Theymerelyseemtohimanaccumulatedcapital。
M\'Cullochgoesstillfurther；hesaysthatmanisasmuchaproduct
oflabourasthemachinewhichheproduces，anditappearstohim
thatinalleconomicalinvestigationshemustberegardedfromthis
pointofview。HethinksthatSmithcomprehendedthecorrectnessof
thisprinciple，onlyhedidnotdeducethecorrectconclusionfrom
it。Amongotherthingshedrawstheconclusionthateatingand
drinkingareproductiveoccupations。ThomasCoopervaluesaclever
Americanlawyerat3，000dollars，whichisaboutthreetimesas
muchasthevalueofastrongslave。
Theerrorsandcontradictionsoftheprevailingschooltowhich
wehavedrawnattention，canbeeasilycorrectedfromthe
standpointofthetheoryoftheproductivepowers。Certainlythose
whofattenpigsorpreparepillsareproductive，butthe
instructorsofyouthsandofadults，virtuosos，musicians，
physicians，judges，andadministrators，areproductiveinamuch
higherdegree。Theformerproducevaluesofexchange，andthe
latterproductivepowers，somebyenablingthefuturegenerationto
becomeproducers，othersbyfurtheringthemoralityandreligious
characterofthepresentgeneration，athirdbyennoblingand
raisingthepowersofthehumanwind，afourthbypreservingthe
productivepowersofhispatients，afifthbyrenderinghuman
rightsandjusticesecure，asixthbyconstitutingandprotecting
publicsecurity，aseventhbyhisartandbytheenjoymentwhichit
occasionsfittingmenthebettertoproducevaluesofexchange。In
thedoctrineofmerevalues，theseproducersoftheproductive
powerscanofcourseonlybetakenintoconsiderationsofaras
theirservicesarerewardedbyvaluesofexchange；andthismanner
ofregardingtheirservicesmayinsomeinstanceshaveits
practicaluse，ase。g。inthedoctrineofpublictaxes，inasmuchas
thesehavetobesatisfiedbyvaluesofexchange。Butwheneverour
considerationisgiventothenationasawholeandinits
internationalrelationsitisutterlyinsufficient，andleadsto
aseriesofnarrow-mindedandfalseviews。
Theprosperityofanationisnot，asSaybelieves，greaterin
theproportioninwhichithasamassedmorewealthi。e。valuesof
exchange，butintheproportioninwhichithasmoredevelopedits
powersofproduction。Althoughlawsandpublicinstitutionsdonot
produceimmediatevalues，theyneverthelessproduceproductive
powers，andSayismistakenifhemaintainsthatnationshavebeen
enabledtobecomewealthyunderallformsofgovernment，andthat
byweansoflawsnowealthcanbecreated。Theforeigntradeofa
nationmustnotbeestimatedinthewayinwhichindividual
merchantsjudgeit，solelyandonlyaccordingtothetheoryof
valuesi。e。byregardingmerelythegainatanyparticularmoment
ofsomematerialadvantage；thenationisboundtokeepsteadily
inviewalltheseconditionsonwhichitspresentandfuture
existence，prosperity，andpowerdepend。
Thenationmustsacrificeandgiveupameasureofmaterial
propertyinordertogainculture，skill，andpowersofunited
production；itmustsacrificesomepresentadvantagesinorderto
insuretoitselffutureones。If，therefore，amanufacturingpower
developedinallitsbranchesformsafundamentalconditionofall
higheradvancesincivilisation，materialprosperity，andpolitical
powerineverynationafactwhich，wethink，wehaveprovedfrom
history；ifitbetrueaswebelievewecanprovethatinthe
presentconditionsoftheworldanewunprotectedmanufacturing
powercannotpossiblyberaisedupunderfreecompetitionwitha
powerwhichhaslongsincegrowninstrengthandisprotectedon
itsownterritory；howcananyonepossiblyundertaketoproveby
argumentsonlybasedonthemeretheoryofvalues，thatanation
oughttobuyitsgoodslikeindividualmerchants，atplaceswhere
theyaretobehadthecheapest——thatweactfoolishlyifwe
manufactureanythingatallwhichcanbegotcheaperfromabroad——
thatweoughttoplacetheindustryofthenationatthemercyof
theself-interestofindividuals——thatprotectiveduties
constitutemonopolies，whicharegrantedtotheindividualhome
manufacturersattheexpenseofthenation？Itistruethat
protectivedutiesatfirstincreasethepriceofmanufactured
goods；butitisjustastrue，andmoreoveracknowledgedbythe
prevailingeconomicalschool，thatinthecourseoftime，bythe
nationbeingenabledtobuildupacompletelydeveloped
manufacturingpowerofitsown，thosegoodsareproducedmore
cheaplyathomethanthepriceatwhichtheycanbeimportedfrom
foreignparts。If，therefore，asacrificeofvalueiscausedby
protectiveduties，itismadegoodbythegainofapowerof
production，whichnotonlysecurestothenationaninfinitely
greateramountofmaterialgoods，butalsoindustrialindependence
incaseofwar。Throughindustrialindependenceandtheinternal
prosperityderivedfromitthenationobtainsthemeansfor
successfullycarryingonforeigntradeandforextendingits
mercantilemarine；itincreasesitscivilisation，perfectsits
institutionsinternally，andstrengthensitsexternalpower。A
nationcapableofdevelopingamanufacturingpower，ifitmakesuse
ofthesystemofprotection，thusactsquiteinthesamespiritas
thatlandedproprietordidwhobythesacrificeofsomematerial
wealthallowedsomeofhischildrentolearnaproductivetrade。
Intowhatmistakestheprevailingeconomicalschoolhasfallen
byjudgingconditionsaccordingtothemeretheoryofvalueswhich
oughtproperlytobejudgedaccordingtothetheoryofpowersof
production，maybeseenveryclearlybythejudgmentwhichJ。B。
Saypassesuponthebountieswhichforeigncountriessometimes
offerinordertofacilitateexportation；hemaintainsthat\'these
arepresentsmadetoournation。\'NowifwesupposethatFrance
considersaprotectivedutyoftwenty-fivepercentsufficientfor
hernotvetperfectlydevelopedmanufactures，whileEnglandwereto
grantabountyonexportationofthirtypercent，whatwouldbethe
consequenceofthe\'present\'whichinthismannertheEnglishwould
maketotheFrench？TheFrenchconsumerswouldobtainforafew
yearsthemanufacturedarticleswhichtheyneededmuchcheaperthan
hitherto，buttheFrenchmanufactorieswouldberuined，and
millionsofmenbereducedtobeggaryorobligedtoemigrate，orto
devotethemselvestoagricultureforemployment。Underthemost
favourablecircumstances，thepresentconsumersandcustomersof
theFrenchagriculturistswouldbeconvertedintocompetitorswith
thelatter，agriculturalproductionwouldbeincreased，andthe
consumptionlowered。Thenecessaryconsequencewouldbediminution
invalueoftheproducts，declineinthevalueofproperty，
nationalpovertyandnationalweaknessinFrance。TheEnglish
\'present\'inmerevaluewouldbedearlypaidforinlossofpower；
itwouldseemlikethepresentwhichtheSultaniswonttomaketo
hispashasbysendingthemvaluablesilkencords。
SincethetimewhentheTrojanswere\'presented\'bytheGreeks
withawoodenhorse，theacceptanceof\'presents\'fromother
nationshasbecomeforthenationwhichreceivesthemavery
questionabletransaction。TheEnglishhavegiventheContinent
presentsofimmensevalueintheformofsubsidies，butthe
Continentalnationshavepaidforthemdearlybythelossofpower。
Thesesubsidiesactedlikeabountyonexportationinfavourofthe
English，andweredetrimentaltotheGermanmanufactories。If
Englandboundherselfto-daytosupplytheGermansgratuitouslyfor
yearswithalltheyrequiredinmanufacturedarticles，wecouldnot
recommendthemtoacceptsuchanoffer。IftheEnglishareenabled
throughnewinventionstoproducelinenfortypercent。cheaper
thantheGermanscanbyusingtheoldprocess，andifintheuseof
theirnewprocesstheymerelyobtainastartofafewyearsover
theGermans，insuchacase，wereitnotforprotectiveduties，one
ofthemostimportantandoldestbranchesofGermany\'sindustry
willberuined。ItwillbeasifalimbofthebodyoftheGerman
nationhadbeenlost。Andwhowouldbeconsoledforthelossofan
armbyknowingthathehadneverthelessboughthisshirtsfortyper
centcheaper？
IftheEnglishveryoftenfindoccasiontoofferpresentsto
foreignnations，verydifferentaretheformsinwhichthisis
done；itisnotunfrequentlydoneagainsttheirwill；alwaysdoes
itbehoveforeignnationswelltoconsiderwhetherornotthe
presentshouldbeaccepted。Throughtheirpositionasthe
manufacturingandcommercialmonopolistsoftheworld，their
manufactoriesfromtimetotimefallintothestatewhichtheycall
\'glut，\'andwhicharisesfromwhattheycall\'overtrading。\'Atsuch
periodseverybodythrowshisstockofgoodsintothesteamers。
Aftertheelapseofeightdaysthegoodsareofferedforsalein
Hamburg，Berlin，orFrankfort，andafterthreeweeksinNewYork，
atfiftypercentundertheirrealvalue。TheEnglishmanufacturers
sufferforthemoment，buttheyaresaved，andtheycompensate
themselveslateronbybetterprices。TheGermanandAmerican
manufacturersreceivetheblowswhichweredeservedbytheEnglish——
theyareruined。TheEnglishnationmerelyseesthefireand
hearsthereportoftheexplosion；thefragmentsfalldowninother
countries，andiftheirinhabitantscomplainofbloodyheads，the
intermediatemerchantsanddealerssay，\'Thecrisishasdoneit
all！\'Ifweconsiderhowoftenbysuchcrisesthewhole
manufacturingpower，thesystemofcredit，naytheagriculture，and
generallythewholeeconomicalsystemofthenationswhoareplaced
infreecompetitionwithEngland，areshakentotheirfoundations，
andthatthesenationshaveafterwardsnotwithstandingrichlyto
recompensetheEnglishmanufacturersbyhigherprices，oughtwenot
thentobecomeveryscepticalastothepropriety，ofthe
commercialconditionsofnationsbeingregulatedaccordingtothe
meretheoryofvaluesandaccordingtocosmopoliticalprinciples？
Theprevailingeconomicalschoolhasneverdeemeditexpedientto
elucidatethecausesandeffectsofsuchcommercialcrises。
Thegreatstatesmenofallmodernnations，almostwithout
exception，havecomprehendedthegreatinfluenceofmanufactures
andmanufactoriesonthewealth，civilisation，andpowerof
nations，andthenecessityofprotectingthem。EdwardIII
comprehendedthislikeElizabeth；FredericktheGreatlikeJoseph
II；WashingtonlikeNapoleon。Withoutenteringintothedepthsof
theindustrytheory，theirforeseeingmindscomprehendedthenature
ofinitsentirety，andappreciateditcorrectly。Itwasreserved
fortheschoolofphysiocratstoregardthisnaturefromanother
pointofviewinconsequenceofasophisticallineofreasoning。
Theircastleintheairhasdisappeared；themoremoderneconomical
schoolitselfhasdestroyedit；buteventhelatterhasalsonot
disentangleditselffromtheoriginalerrors，buthasmerely
advancedsomewhatfartherfromthem。Sinceitdidnotrecognisethe
differencebetweenproductivepowerandmerevaluesofexchange，
anddidnotinvestigatetheformerindependentlyofthelatter，but
subordinatedittothetheoryofvaluesofexchange，itwas
impossibleforthatschooltoarriveattheperceptionhowgreatly
thenatureoftheagriculturalproductivepowerdiffersfromthe
natureofthemanufacturingproductivepower。Itdoesnotdiscern
thatthroughthedevelopmentofamanufacturingindustryinan
agriculturalnationamassofmentalandbodilypowers，ofnatural
powersandnaturalresources，andofinstrumentalpowerstoowhich
lattertheprevailingschoolterms\'capital\'，isbroughttobear，
andbroughtintouse，whichhadnotpreviouslybeenactive，and
wouldneverhavecomeintoactivitybutfortheformationand
developmentofaninternalmanufacturingpower；itimaginesthatby
theestablishmentofmanufacturingindustrytheseforcesmustbe
takenawayfromagriculture，andtransferredtomanufacture，
whereasthelattertoagreatextentisaperfectlynewand
additionalpower，which，veryfarindeedfromincreasingatthe
expenseoftheagriculturalinterest，isoftenthemeansofhelping
thatinteresttoattainahigherdegreeofprosperityand
development。
NOTES：
1。ThisistruerespectingSpainuptotheperiodofherinvasion
byNapoleon，butnotsubsequently。Ourauthor\'sconclusionsare，
however，scarcelyinvalidatedbythatexception——TR。
2。SaystatesinhisEconomiePolitiquePratique，vol。iii。p。242，
\'Lesloisnepeuventpascr閑rdesrichesses。\'Certainlythey
cannotdothis，buttheycreateproductivepower，whichismore
importantthanriches，i。e。thanpossessionofvaluesofexchange。
3。WealthofNations，BookIV。chap。ii。
4。FromthegreatnumberofpassageswhereinJ。B。Sayexplains
thisview，wemerelyquotethenewest——fromthesixthvolumeof
EconomiePolitiquePratique，p。307：\'Letalentd\'unavocat，d\'un
m閐ecin，quia閠？acquisauprixdequelquesacrificeetqui
produitunrevenu，estunevaleurcapitale，nontransmissible？la
v閞it？maisquir閟iden閍nmoinsdansuncorpsvisible，celuide
lapersonnequileposs鑔e。\'
Chapter13
TheNationalDivisionofCommercialOperationsandthe
ConfederationoftheNationalProductiveForces
Theschoolisindebtedtoitsrenownedfounderforthe
discoveryofthatnaturallawwhichitcalls\'divisionoflabour，\'
butneitherAdamSmithnoranyofhissuccessorshavethoroughly
investigateditsessentialnatureandcharacter，orfolloweditout
toitsmostimportantconsequences。
Theexpression\'divisionoflabour\'isanindefiniteone，and
mustnecessarilyproduceafalseorindefiniteidea。
Itis\'divisionoflabour\'ifonesavageononeandthesame
daygoeshuntingorfishing，cutsdownwood，repairshiswigwam，
andpreparesarrows，nets，andclothes；butitisalso\'divisionof
labour\'ifasAdamSmithmentionsasanexampletendifferent
personsshareinthedifferentoccupationsconnectedwiththe
manufactureofapin：theformerisanobjective，andthelattera
subjectivedivisionoflabour；theformerhinders，thelatter
furthersproduction。Theessentialdifferencebetweenbothis，that
intheformerinstanceonepersondivideshisworksoastoproduce
variousobjects，whileinthelatterseveralpersonsshareinthe
productionofasingleobject。
Bothoperations，ontheotherhand，maybecalledwithequal
correctnessaunionoflabour；thesavageunitesvarioustasksin
hisperson，whileinthecaseofthepinmanufacturevarious
personsareunitedinoneworkofproductionincommon。
Theessentialcharacterofthenaturallawfromwhichthe
popularschoolexplainssuchimportantphenomenainsocialeconomy，
isevidentlynotmerelyadivisionoflabour，butadivisionof
differentcommercialoperationsbetweenseveralindividuals，andat
thesametimeaconfederationorunionofvariousenergies，
intelligences，andpowersonbehalfofacommonproduction。The
causeoftheproductivenessoftheseoperationsisnotmerelythat
division，butessentiallythisunion。AdamSmithwellperceives
thishimselfwhenhestates，\'Thenecessariesoflifeofthelowest
membersofsocietyareaproductofjointlabourandofthe
co-operationofanumberofindividuals。\'1*Whatapitythathe
didnotfollowoutthisideawhichhesoclearlyexpressesof
unitedlabour。
Ifwecontinuetoconsidertheexampleofthepinmanufacture
adducedbyAdamSmithinillustrationoftheadvantagesofdivision
oflabour，andseekforthecausesofthephenomenonthatten
personsunitedinthatmanufacturecanproduceaninfinitelylarger
numberofpinsthanifeveryonecarriedontheentirepin
manufactureseparately，wefindthatthedivisionofcommercial
operationswithoutcombinationoftheproductivepowerstowardsone
commonobjectcouldbutlittlefurtherthisproduction。
Inordertocreatesucharesult，thedifferentindividuals
mustco-operatebodilyaswellasmentally，andworktogether。The
onewhomakestheheadsofthepinsmustbecertainoftheco
operationoftheonewhomakesthepointsifhedoesnotwantto
runtheriskofproducingpinheadsinvain。Thelabouroperations
ofallmustbeintheproperproportiontooneanother，theworkmen
mustliveasneartooneanotheraspossible，andtheir
co-operationmustbeinsured。Letussupposee。g。thateveryoneof
thesetenworkmenlivesinadifferentcountry；howoftenmight
theirco-operationbeinterruptedbywars，interruptionsof
transport，commercialcrises，&c。；howgreatlywouldthecostof
theproductbeincreased，andconsequentlytheadvantageofthe
divisionofoperationdiminished；andwouldnottheseparationor
secessionofasinglepersonfromtheunion，throwalltheothers
outofwork？
Thepopularschool，becauseithasregardedthedivisionof
operationaloneastheessenceofthisnaturallaw，hascommitted
theerrorofapplyingitmerelytotheseparatemanufactoryor
farm；ithasnotperceivedthatthesamelawextendsitsaction
especiallyoverthewholemanufacturingandagriculturalpower，
overthewholeeconomyofthenation。
Asthepinmanufactoryonlyprospersbytheconfederationof
theproductiveforceoftheindividuals，sodoeseverykindof
manufactureprosperonlybytheconfederationofitsproductive
forceswiththoseofallotherkindsofmanufacture。Forthe
successofamachinemanufactory，forinstance，itisnecessary
thattheminesandmetalworksshouldfurnishitwiththenecessary
materials，andthatallthehundreddifferentsortsof
manufactorieswhichrequiremachines，shouldbuytheirproducts
fromit。Withoutmachinemanufactories，anationwouldintimeof
warbeexposedtothedangeroflosingthegreaterportionofits
manufacturingpower。
InlikemannertheentiremanufacturingindustryofaStatein
connectionwithitsagriculturalinterest，andthelatterin
connectionwiththeformer，willprosperthemorethenearerthey
areplacedtooneanother，andthelesstheyareinterruptedin
theirmutualexchangeswithoneanother。Theadvantagesoftheir
confederationunderoneandthesamepoliticalPowerintimesof
war，ofnationaldifferences，ofcommercialcrises，failureof
crops，&c。，arenotlessperceptiblethanaretheadvantagesofthe
unionofthepersonsbelongingtoapinmanufactoryunderoneand
thesameroof。
Smithaffirmsthatthedivisionoflabourislessapplicableto
agriculturethantomanufactures。2*Smithhadinviewonlythe
separatemanufactoryandtheseparatefarm。Hehas，however，
neglectedtoextendhisprincipleoverwholedistrictsand
provinces。Nowherehasthedivisionofcommercialoperationsand
theconfederationoftheproductivepowersgreaterinfluencethan
whereeverydistrictandeveryprovinceisinapositiontodevote
itselfexclusively，oratleastchiefly，tothosebranchesof
agriculturalproductionforwhichtheyaremostlyfittedbynature。
Inonedistrictcornandhopschieflythrive，inanothervinesand
fruit，inathirdtimberproductionandcattlerearing，&c。If
everydistrictisdevotedtoallthesebranchesofproduction，it
isclearthatitslabouranditslandcannotbenearlyso
productiveasifeveryseparatedistrictweredevotedmainlyto
thosebranchesofproductionforwhichitisspeciallyadaptedby
nature，andasifitexchangedthesurplusofitsownspecial
productsforthesurplusproduceofthoseprovinceswhichinthe
productionofothernecessariesoflifeandrawmaterialspossess
anaturaladvantageequallypeculiartothemselves。Thisdivision
ofcommercialoperations，thisconfederationoftheproductive
forcesoccupiedinagriculture，canonlytakeplaceinacountry
whichhasattainedthegreatestdevelopmentofallbranchesof
manufacturingindustry；forinsuchacountryonlycanagreat
demandforthegreatestvarietyofproductsexist，orthedemand
forthesurplusofagriculturalproductionsbesocertainand
considerablethattheproducercanfeelcertainofdisposingofany
quantityofhissurplusproduceduringthisoratleastduringnext
yearatsuitableprices；insuchacountryonlycanconsiderable
capitalbedevotedtospeculationintheproduceofthecountryand
holdingstocksofit，orgreatimprovementsintransport，suchas
canalsandrailwaysystems，linesofsteamers，improvedroads，be
carriedoutprofitably；andonlybymeansofthoroughlygoodmeans
oftransportcaneverydistrictorprovinceconveythesurplusof
itspeculiarproductstoallotherprovinces，eventothemost
distantones，andprocureinreturnsuppliesofthepeculiar
productsofthelatter。Whereeverybodysupplieshimselfwithwhat
herequires，thereisbutlittleopportunityforexchange，and
thereforenoneedforcostlyfacilitiesoftransport。
Wemaynoticehowtheaugmentationofthepowersofproduction
inconsequenceoftheseparationofoccupationsandthe
co-operationofthepowersofindividualsbeginsintheseparate
manufactoryandextendstotheunitednation。Themanufactory
prosperssomuchthemoreinproportionasthecommercial
operationsaredivided，themorecloselytheworkmenareunited，
andthemoretheco-operationofeachpersonisinsuredforthe
whole。Theproductivepowersofeveryseparatemanufactoryarealso
increasedinproportionasthewholemanufacturingpowerofthe
countryisdevelopedinallitsbranches，andthemoreintimately
itisunitedwithallotherbranchesofindustry。Theagricultural
powerofproductionissomuchgreaterthemoreintimatelya
manufacturingpowerdevelopedinallitsbranchesisunited
locally，commercially，andpoliticallywithagriculture。In
proportionasthemanufacturingpoweristhusdevelopedwillthe
divisionofthecommercialoperationsandtheco-operationofthe
productivepowersinagriculturealsodevelopthemselvesandbe
raisedtothehigheststageofperfection。Thatnationwill
thereforepossessmostproductivepower，andwillconsequentlybe
therichest，whichhascultivatedmanufacturingindustryinall
brancheswithinitsterritorytothehighestperfection，andwhose
territoryandagriculturalproductionislargeenoughtosupplyits
manufacturingpopulationwiththelargestpartofthenecessaries
oflifeandrawmaterialswhichtheyrequire。
Letusnowconsidertheoppositesideofthisargument。A
nationwhichpossessesmerelyagriculture，andmerelythemost
indispensableindustries，isinwantofthefirstandmost
necessarydivisionofcommercialoperationsamongitsinhabitants，
andofthemostimportanthalfofitsproductivepowers，indeedit
isinwantofausefuldivisionofcommercialoperationsevenin
theseparatebranchesofagricultureitself。Anationthus
imperfectwillnotonlybemerelyhalfasproductiveasaperfect
nation，butwithanequalorevenwithamuchlargerterritory，
withanequaloramuchlargerpopulation，itwillperhapsscarcely
obtainafifth，probablyscarcelyatenth，partofthatmaterial
wealthwhichaperfectnationisabletoprocure；andthisforthe
samereasonowingtowhichinaverycomplicatedmanufactoryten
personsproducenotmerelytentimesmore，butperhapsthirtytimes
more，thanoneperson，oramanwithonearmcannotmerelywork
halfaslittle，butinfinitelyless，thanamanwithtwoarms。This
lossinproductivepowerwillbesomuchgreater，themorethatthe
manufacturingoperationscanbefurtheredbymachinery，andthe
lessthatmachinerycanbeappliedinagriculture。Apartofthe
productivepowerwhichtheagriculturalnationthusloses，will
falltothelotofthatnationwhichexchangesitsmanufactured
goodsforagriculturalproducts。Thiswill，however，beapositive
lossonlyincasetheagriculturalnationhasalreadyreachedthat
stageofcivilisationandpoliticaldevelopmentwhichisnecessary
fortheestablishmentofamanufacturingpower。Ifithasnotyet
attainedthatstage，andstillremainsinabarbarousor
half-civilisedstate，ifitsagriculturalpowerofproductionhas
notyetdevelopeditselfevenfromthemostprimitivecondition，if
bytheimportationofforeignfabricsandtheexportationofraw
productsitsprosperityneverthelessincreasesconsiderablyfrom
yeartoyear，anditsmentalandsocialpowerscontinuetobe
awakenedandincreased，ifsuchcommerceasitcanthuscarryonis
notinterruptedbyforeignprohibitionofimportationofraw
products，orbywars，oriftheterritoryoftheagricultural
nationissituatedinatropicalclimate，thegainonbothsides
willthenbeequalandinconformitywiththelawsofnature，
becauseundertheinfluenceofsuchanexchangeofthenative
productsforforeignfabrics，anationsosituatedwillattainto
civilisationanddevelopmentofitsproductivepowersmorequickly
andsafelythanwhenithastodevelopthementirelyoutofits
resources。If，however，theagriculturalnationhasalreadyreached
theculminatingpointofitsagriculturaldevelopment，asfaras
thatcanbeattainedbytheinfluenceofforeigncommerce，orif
themanufacturingnationrefusestotaketheproductsofthe
agriculturalnationinexchangeforitsmanufacturedgoods，andif
nevertheless，owingtothesuccessfulcompetitionofthe
manufacturingnationinthemarketsoftheagriculturalnation，no
manufacturescanspringupinthelatter，insuchacasethe
agriculturalproductivepoweroftheagriculturalnationisexposed
tothedangerofbeingcrippled。
Byacrippledstateofagriculturewemeanthatstateofthings
inwhich，fromwantofapowerfulandsteadilydeveloping
manufacturingindustry，theentireincreaseofpopulationtendsto
throwitselfonagricultureforemployment，consumesallthe
surplusagriculturalproductionofthecountry，andassoonasit
hasconsiderablyincreasedeitherhastoemigrateorsharewiththe
agriculturistsalreadyinexistencethelandimmediatelyathand，
tillthelandedpropertyofeveryfamilyhasbecomesosmallthat
itproducesonlythemostelementaryandnecessaryportionofthat
family\'srequirementsoffoodandrawmaterials，butno
considerablesurpluswhichitmightexchangewiththemanufacturers
forthemanufacturedproductswhichitrequires。Underanormal
developmentoftheproductivepowersoftheState，thegreaterpart
oftheincreaseofpopulationofanagriculturalnationassoonas
ithasattainedacertaindegreeofcultureshouldtransferitself
tomanufacturingindustry，andtheexcessoftheagricultural
productsshouldpartlyserveforsupplyingthemanufacturing
populationwithprovisionsandrawmaterials，andpartlyfor
procuringfortheagriculturiststhemanufacturedgoods，machines，
andutensilswhichtheyrequirefortheirconsumption，andforthe
increaseoftheirownproduction。
Ifthisstateofthingssetsinatthepropertime，
agriculturalandindustrialproductivepowerwillincrease
reciprocally，andindeedadinfinitum。Thedemandforagricultural
productsonthepartoftheindustrialpopulationwillbesogreat，
thatnogreaternumberoflabourerswillbedivertedto
agriculture，noranygreaterdivisionoftheexistinglandbemade，
thanisnecessarytoobtainthegreatestpossiblesurplusproduce
fromit。Inproportiontothissurplusproducethepopulation
occupiedinagriculturewillbeenabledtoconsumetheproductsof
theworkmenemployedinmanufacturing。Acontinuousincreaseofthe
agriculturalsurplusproducewilloccasionacontinuousincreaseof
thedemandformanufacturingworkmen。Theexcessofthe
agriculturalpopulationwillthereforecontinuallyfindworkinthe
manufactories，andthemanufacturingpopulationwillatlengthnot
onlyequaltheagriculturalpopulationinnumbers，butwillfar
exceedit。ThislatteristheconditionofEngland；thatwhichwe
formerlydescribedisthatofpartofFranceandGermany。England
wasprincipallybroughttothisnaturaldivisionofindustrial
pursuitsbetweenthetwogreatbranchesofindustry，bymeansof
herflocksofsheepandwoollenmanufactures，whichexistedthere
onalargescalemuchsoonerthaninothercountries。Inother
countriesagriculturewascrippledmainlybytheinfluenceof
feudalismandarbitrarypower。Thepossessionoflandgave
influenceandpower，merelybecausebyitacertainnumberof
retainerscouldbemaintainedwhichthefeudalproprietorcould
makeuseofinhisfeuds。Themorevassalshepossessed，somany
morewarriorshecouldmuster。Itwasbesidesimpossible，owingto
therudenessofthosetimes，forthelandedproprietortoconsume
hisincomeinanyothermannerthanbykeepingalargenumberof
servants，andhecouldnotpaythesebetterandattachthemtohis
ownpersonmoresurelythanbygivingthemabitoflandto
cultivateundertheconditionofrenderinghimpersonalserviceand
ofpayingasmallertaxinproduce。Thusthefoundationfor
excessivedivisionofthesoilwaslaidinanartificialmanner；
andifinthepresentdaytheGovernmentseeksbyartificialmeans
toalterthatsystem，insodoingitismerelyrestoringthe
originalstateofthings。
Inordertorestrainthecontinueddepreciationofthe
agriculturalpowerofanation，andgraduallytoapplyaremedyto
thatevilinsofarasitistheresultofpreviousinstitutions，
nobettermeansexistsapartfromthepromotionofemigration
thantoestablishaninternalmanufacturingpower，bywhichthe
increaseofpopulationmaybegraduallydrawnovertothelatter，
andagreaterdemandcreatedforagriculturalproduce，bywhich
consequentlythecultivationoflargerestatesmayberenderedmore
profitable，andthecultivatorinducedandencouragedtogainfrom
hislandthegreatestpossibleamountofsurplusproduce。
Theproductivepowerofthecultivatorandofthelabourerin
agriculturewillalwaysbegreaterorsmalleraccordingtothe
degreeinwhichtheexchangeofagriculturalproducefor
manufacturesandotherproductsofvariouskindscanproceedmore
orlessreadily。Thatinthisrespecttheforeigntradeofany
nationwhichisbutlittleadvancedcanproveinthehighestdegree
beneficial，wehaveshowninanotherchapterbytheexampleof
England。Butanationwhichhasalreadymadeconsiderableadvances
incivilisation，inpossessionofcapital，andinpopulation，will
findthedevelopmentofamanufacturingpowerofitsowninfinitely
morebeneficialtoitsagriculturethanthemostflourishing
foreigntradecanbewithoutsuchmanufactures，becauseitthereby
securesitselfagainstallfluctuationstowhichitmaybeexposed
bywar，byforeignrestrictionsontrade，andbycommercialcrises，
becauseittherebysavesthegreatestpartofthecostsof
transportandcommercialchargesincurredinexportingitsown
productsandinimportingmanufacturedarticles，becauseitderives
thegreatestadvantagesfromtheimprovementsintransportwhich
arecalledintoexistencebyitsownmanufacturingindustry，while
fromthesamecauseamassofpersonalandnaturalpowershitherto
unemployedwillbedeveloped，andespeciallybecausethereciprocal
exchangebetweenmanufacturingpowerandagriculturalpowerisso
muchgreater，theclosertheagriculturistandmanufacturerare
placedtooneanother，andthelesstheyareliabletobe
interruptedintheexchangeoftheirvariousproductsbyaccidents
ofallkinds。
InmyletterstoMr。CharlesJ。Ingersoll，Presidentofthe
SocietyforPromotingArtsandIndustriesinPhiladelphia，ofthe
year1828entitled，\'OutlinesofaNewSystemofPolitical
Economy\'，Itriedtoexplaintheadvantagesofaunionofthe
manufacturingpowerwithagricultureinoneandthesamecountry，
andunderoneandthesamepoliticalpower，inthefollowing
manner。Supposingyoudidnotunderstandtheartofgrindingcorn，
whichhascertainlybeenagreatartinitstime；supposingfurther
thattheartofbakingbreadhadremainedunknowntoyou，as
accordingtoAndersontherealartofsaltingherringswasstill
unknowntotheEnglishintheseventeenthcentury；supposing，
therefore，thatyouhadtosendyourcorntoEnglandtobeground
intoflourandbakedintobread，howlargeaquantityofyourcorn
wouldnottheEnglishretainaspayforthegrindingandbaking；
howmuchofitwouldthecarters，seamen，andmerchantsconsume，
whowouldhavetobeemployedinexportingthecornandimporting
thebread；andhowmuchwouldcomebackintothehandsofthosewho
cultivatedthecorn？Thereisnodoubtthatbysuchaprocessthe
foreigntradewouldreceiveaconsiderableimpetus，butitisvery
doubtfulwhetherthisintercoursewouldbespeciallyadvantageous
tothewelfareandindependenceofthenation。Consideronlyin
caseofawarbreakingoutbetweenyourcountrytheUnitedStates
andGreatBritain，whatwouldbethesituationofthosewho
producedcornfortheEnglishmillsandbakehouses，andonthe
otherhandthesituationofthosewhohadbecomeaccustomedtothe
tasteoftheEnglishbread。Justas，however，theeconomical
prosperityofthecorn-cultivatinginterestrequiresthatthecorn
millersshouldliveinitsvicinity，soalsodoestheprosperityof
thefarmerespeciallyrequirethatthemanufacturershouldlive
closetohim，soalsodoestheprosperityofaflatandopen
countryrequirethataprosperousandindustrialtownshouldexist
initscentre，andsodoestheprosperityofthewholeagriculture
ofacountryrequirethatitsownmanufacturingpowershouldbe
developedinthehighestpossibledegree。
Letuscomparetheconditionofagricultureinthevicinityof
apopuloustownwithitsconditionwhencarriedonindistant
provinces。Inthelattercasethefarmercanonlycultivatefor
salethoseproductswhichcanbearalongtransport，andwhich
cannotbesuppliedatcheaperpricesandinbetterqualityfrom
districtslyingnearertothosewhopurchasethem。Alargerportion
ofhisprofitswillbeabsorbedbythecostsoftransport。Hewill
finditdifficulttoprocurecapitalwhichhemayemployusefully
onhisfarm。Fromwantofbetterexamplesandmeansofeducationhe
willnotreadilybeledtoavailhimselfofnewprocesses，of
betterimplements，andofnewmethodsofcultivation。Thelabourer
himself，fromwantofgoodexample，ofstimulustoexertion，andto
emulationintheexerciseofhisproductivepowers，willonly
developthosepowersinefficiently，andwillindulgehimselfin
loiteringaboutandinidleness。
Ontheotherhand，intheproximityofthetown，thefarmeris
inapositiontouseeverypatchoflandforthosecropswhichbest
suitthecharacterofthesoil。Hewillproducethegreatest
varietyofthingstothebestadvantage。Gardenproduce，poultry，
eggs，milk，butter，fruit，andespeciallyarticleswhichthefarmer
residingatadistanceconsidersinsignificantandsecondary
things，willbringtothefarmernearthetownconsiderableprofit。
Whilethedistantfarmerhastodependmainlyonthemerebreeding
ofcattle，theotherwillmakemuchbetterprofitsfromfattening
them，andwilltherebybeledtoperfecthiscultivationofroot
cropsandfodder。Hecanutilisewithmuchprofitanumberof
thingswhichareoflittleornousetothedistantfarmer；e。g。
stone，sand，waterpower，&c。Themostnumerousandbestmachines
andimplementsaswellasallmeansforhisinstruction，areclose
athand。Itwillbeeasyforhimtoaccumulatethecapital
necessaryfortheimprovementofhisfarm。Landedproprietorsand
workmen，bythemeansofrecreationwhichthetownaffords，the
emulationwhichitexcitesamongthem，andthefacilityofmaking
profits，willbeincitedtoexertalltheirmentalandbodily
powersfortheimprovementoftheircondition。Andpreciselythe
samedifferenceexistsbetweenanationwhichunitesagriculture
andmanufacturesonitsownterritory，andanationwhichcanonly
exchangeitsownagriculturalproductsforforeignmanufactured
goods。
Thewholesocialstateofanationwillbechieflydetermined
bytheprincipleofthevarietyanddivisionofoccupationsandthe
cooperationofitsproductivepowers。Whatthepinisinthepin
manufactory，thatthenationalwell-beingistothelargesociety
whichweterm\'thenation。\'Themostimportantdivisionof
occupationsinthenationisthatbetweenthementalandmaterial
ones。Botharemutuallydependentononeanother。Themorethe
mentalproducerssucceedinpromotingmorality，religion，
enlightenment，increaseofknowledge，extensionoflibertyandof
perfectionofpoliticalinstitutions——securityofpersonsand
propertywithintheState，andtheindependenceandpowerofthe
nationexternally——somuchgreaterwillbetheproductionof
materialWealth。Ontheotherhand，themoregoodsthatthe
materialproducersproduce，themorewillmentalproductionbe
capableofbeingpromoted。
Themostimportantdivisionofoccupations，andthemost
importantco-operationofproductivepowersinmaterialproduction，
isthatofagricultureandmanufacture。Bothdependmutuallyupon
oneanother，aswehaveshown。
Asinthepinmanufactory，soalsointhenationdoesthe
productivenessofeveryindividual——ofeveryseparatebranchof
production——andfinallyofthewholenationdependonthe
exertionsofallindividualsstandinginproperrelationtoone
another。Wecallthisrelationthebalanceortheharmonyofthe
productivepowers。Itispossibleforanationtopossesstoomany
philosophers，philologers，andliterati，andtoofewskilled
artisans，merchants，andseamen。Thisistheconsequenceofhighly
advancedandlearnedculturewhichisnotsupportedbyahighly
advancedmanufacturingpowerandbyanextensiveinternaland
externaltrade；itisasifinapinmanufactoryfarmorepinheads
weremanufacturedthanpinpoints。Thesurpluspinheadsinsucha
nationare：amassofuselessbooks，subtletheoreticalsystems，
andlearnedcontroversies，throughwhichthemindofthenationis
moreobscuredthancultivated，andiswithdrawnfromuseful
occupations；consequentlyitsproductivepowersareretardedin
theirprogressalmostasmuchasifitpossessedtoomanypriests
andtoofewinstructorsofyouth，toomanysoldiersandtoofew
politicians，toomanyadministratorsandtoofewjudgesand
defendersofjusticeandright。