4。Thatthemanufacturingandcommercialcapital，inclusiveof
ships，doesnotaltogetheramounttomorethan2411/2millions，
andthereforetoonlyabout1/18oftheEnglishnationalwealth。
5。ThatthewholeEnglishagriculturalcapital，with3，311
millions，yieldsagrossincomeof539millions，consequentlyabout
16percent；whilemanufacturingandcommercialcapital，amounting
to218millions，givesagrossannualproductionof2591/2
millionsorof120percent。
Itmusthere，aboveallthings，benotedthatthe218millions
manufacturingcapital，withanannualproductionof2591/2
millions，constitutethechiefreasonwhytheEnglishagricultural
capitalcouldhaveattainedtotheenormousamountof3，311
millions，anditsannualproducetothesumof539millions。Byfar
thegreatestpartoftheagriculturalcapitalconsistsinthevalue
oflandandcattle。Manufactures，bydoublingandtreblingthe
populationofthecountry，byfurnishingthemeansforanimmense
foreigncommerce，fortheacquisitionandexplorationofanumber
ofcolonies，andforalargemercantilemarine，haveincreasedin
thesameproportionthedemandformeansofsubsistenceandraw
materials，haveaffordedtotheagriculturistatoncethemeansand
themotiveforsatisfyingthisincreaseddemand，haveincreasedthe
exchangeablevalueoftheseproducts，andthuscausedthe
proportionateincreaseintheamountandthesellingvalueofthe
rentofland，consequentlyofthelanditself。Werethese218
millionsofmanufacturingandcommercialcapitaldestroyed，we
shouldseenotmerelythe2591/2millionsmanufacturing
production，butalsothegreatestpartofthe3，311millions
agriculturalcapital，andconsequentlyofthe539millions
agriculturalproduction，disappear。TheEnglishnationalproduction
wouldnotmerelylose2591/2millionsthevalueofits
manufacturingproduction，butthevalueoflandwoulddeclineto
thevaluewhichithasinPoland，i。e。tothetenthortwentieth
partofitspresentvalue。
Fromthisitfollowsthatallcapitalwhichisdevotedbythe
agriculturalnationinaprofitablemannertomanufactures，
increasesinthecourseoftimethevalueofthelandtenfold。
Experienceandstatisticseverywhereconfirmthisstatement。
Everywhereithasbeenseenthatinconsequenceofthe
establishmentofmanufacturesthevalueoflandandalsothatof
thestockofcapitalrapidlyincreases。Letanyonecomparethese
valuesinFrancein1789andin1840，inNorthAmericain1820
andin1830，orinGermanyin1830andin1840，howtheyhave
correspondedwithalessdevelopedoramorefullydeveloped
conditionofmanufactures，andhewillfindourobservation
everywhereconfirmed。
Thereasonforthisappearanceliesintheincreasedpowerof
productioninthenation，whichemanatesfromtheregulardivision
oflabourandfromthestrengthenedconfederationofthenational
powers，alsofromabetteruseofthementalandnaturalpowers
placedatthedisposalofthenation，andfromforeigncommerce。
Thesearetheverysamecausesandeffectswhichwemay
perceiveinrespecttoimprovedmeansoftransport；whichnot
merelyyieldinthemselvesarevenue，andthroughitareturnfor
thecapitalspentuponthem，butalsopowerfullypromotethe
developmentofmanufacturesandagriculture，wherebytheyincrease
inthecourseoftimethevalueofthelandedpropertywithintheir
districtstotenfoldthevalueoftheactualmaterialcapitalwhich
hasbeenemployedincreatingthem。Theagriculturist，in
comparisonwiththeundertakerofsuchworksimprovedmeansof
transport，hasthegreatadvantageofbeingquitesureofhis
tenfoldgainonhisinvestedcapitalandofobtainingthisprofit
withoutmaltinganysacrifices，whilethecontractorfortheworks
muststakehiswholecapital。Thepositionoftheagriculturistis
equallyfavourableascomparedwiththatoftheerectorofnew
manufactories。
If，however，thiseffectofmanufacturesonagricultural
production，onrent，andthereforeonthevalueoflandedproperty，
issoconsiderableandadvantageousforallwhoareinterestedin
agriculture；how，then，canitbemaintainedthatprotective
measureswouldfavourmanufacturesmerelyatthecostofthe
agriculturists？
Thematerialprosperityofagriculturists，aswellasofall
otherprivatepersons，principallydependsonthepointthatthe
valueofwhattheyproduceshallexceedthevalueofwhatthey
consume。It，therefore，isnotsoimportanttothemthat
manufacturedgoodsshouldbecheap，asespeciallythatalarge
demandforvariousagriculturalproductsshouldexist，andthat
theseshouldbearahighvalueinexchange。Now，ifmeasuresof
protectionoperatesothattheagriculturistgainsmorebythe
improvementofthemarketforhisownproducethanhelosesbythe
increaseofthepricesofsuchmanufacturedgoodsasherequiresto
buy，hecannotrightlybedescribedasmakingasacrificeinfavour
ofthemanufacturer。Thiseffectis，however，alwaysobservablein
thecaseofallnationswhoarecapableofestablishinga
manufacturingpoweroftheirown，andintheircaseismost
apparentduringthefirstperiodoftheriseofthenative
manufacturingindustry；sincejustatthattimemostofthecapital
transferredtomanufacturingindustryisspentontheerectionof
dwellinghousesandmanufactories，theapplicationofwaterpower，
&c。，anexpenditurewhichchieflybenefitstheagriculturist。
Howevermuchinthebeginningtheadvantagesofthegreatersaleof
agriculturalproduceandofitsincreasedvalueoutweighsthe
disadvantageoftheincreasedpriceofmanufacturedgoods，somust
thisfavourableconditionalwaysincreasefurthertotheadvantage
oftheagriculturists，becausetheflourishingofthemanufactories
alwaystendsinthecourseoftimecontinuallymoreandmoreto
increasethepricesobtainableforagriculturalproduceandto
lessenthepricesofmanufacturedgoods。
Further，theprosperityoftheagriculturistandlanded
proprietorisespeciallydependentonthecircumstancethatthe
valueoftheinstrumentfromwhichhisincomeisderived，namely，
hislandedproperty，atleastmaintainsitsformerposition。This
isnotmerelythechiefconditionofhisprosperity，butfrequently
ofhisentireeconomicalexistence。Forinstance，itfrequently
happensthattheannualproductionoftheagriculturistexceedshis
consumption，andneverthelesshefindshimselfruined。Thisoccurs
ifwhilehislandedpropertyisencumberedwithmoneydebts，the
generalcreditbecomesfluctuating；ifononesidethedemandfor
moneycapitalexceedsthesupplyofit，andontheotherhandthe
supplyoflandexceedsthedemand。Insuchcasesageneral
withdrawalofmoneyloansandageneralofferoflandforsale
arises，andconsequentlylandbecomesalmostvalueless，andalarge
numberofthemostenterprising，active，andeconomicalland
cultivatorsareruined，notbecausetheirconsumptionhasexceeded
theirproduction，butbecausetheinstrumentoftheirproduction，
theirlandedproperty，haslostintheirhandsaconsiderable
portionofitsvalue，inconsequenceofcausesoverwhichtheyhad
nocontrol；further，becausetheircredithastherebybecome
destroyed；andfinally，becausetheamountofthemoneydebtswith
whichtheirlandedpropertyisencumberedisnolongerin
proportiontothemoneyvalueoftheirpossessions，whichhas
becomedepressedbythegeneralworthlessnessoflandedproperty。
SuchcriseshaveoccurredinGermanyandNorthAmericaduringthe
lastfiftyyearsmorethanonce，andinthismanneralarge
proportionoftheGermannobilityfindthemselvesnolongerin
possessionofpropertyorlandedestate，withouthavingclearly
perceivedthattheyreallyowethisfatetothepolicyadoptedby
theirbrothersinEngland，theTorieswhomtheyregardassowell
disposed。Theconditionoftheagriculturistandlandedproprietor
is，however，totallydifferentincountrieswheremanufactures
flourishvigorously。There，whiletheproductivecapabilitiesof
thelandandthepricesofproduceareincreased，henotmerely
gainstheamountbywhichthevalueofhisproductionexceedsthe
valueofhisconsumption；hegains，aslandedproprietor，notonly
anincreaseofannualrent，buttheamountofcapitalrepresented
bytheincreaseofrent。Hispropertydoublesandtreblesitselfin
value，notbecauseheworksmore，improveshisfieldsmore，or
savesmore，butbecausethevalueofhispropertyhasbeen
increasedinconsequenceoftheestablishmentofmanufactures。This
effectaffordstohimmeansandinducementforgreatermentaland
bodilyexertions，forimprovementofhisland，fortheincreaseof
hislivestock，andforgreatereconomy，notwithstandingincreased
consumption。Withtheincreaseinthevalueofhislandhiscredit
israised，andwithitthecapabilityofprocuringthematerial
capitalrequiredforhisimprovements。
AdamSmithpassesovertheseconditionsoftheexchangeable
valueoflandinsilence。J。B。Say，onthecontrary，believesthat
theexchangeablevalueoflandisoflittleimportance，inasmuch
as，whetheritsvaluebehighorlow，italwaysservesequallywell
forproduction。ItissadtoreadfromanauthorwhomhisGerman
translatorsregardasauniversalnationalauthority，such
fundamentallywrongviewsaboutamatterwhichaffectssodeeply
theprosperityofnations。We，onthecontrary，believeit
essentialtomaintainthatthereisnosurertestofnational
prosperitythantherisingandfallingofthevalueoftheland，
andthatfluctuationsandcrisesinthataretobeclassedamong
themostruinousofallplaguesthatcanbefallacountry。
Intothiserroneousviewtheschoolhasalsobeenledbyits
predilectionforthetheoryoffreetradeasitdesiresthelatter
termtobeunderstood。Fornowherearefluctuationsandcrisesin
thevalueandpriceoflandgreaterthaninthosepurely
agriculturalnationswhichareinunrestrictedcommercial
intercoursewithrichandpowerfulmanufacturingandcommercial
nations。
Foreigncommercealso，itistrue，actsontheincreaseofrent
andthevalueofland，butitdoessoincomparablylessdecidedly，
uniformly，andpermanently，thantheestablishmentofhome
manufactures，thecontinuousregularincreaseofmanufacturing
production，andtheexchangeofhomemanufacturingproductsfor
homeagriculturalproducts。
Solongastheagriculturalnationstillpossessesalarge
quantityofuncultivatedorbadlycultivatedland，solongasit
producesstaplearticleswhicharereadilytakenbythericher
manufacturingnationinexchangeformanufacturedgoods，solongas
thesearticlesareeasyoftransport，solongalsoasthedemand
forthemislastingandcapableofannualincreaseatarate
correspondingwiththegrowthoftheproductivepowersofthe
agriculturalnation，andsolongasitisnotinterruptedbywars
orforeigntariffregulations，undersuchcircumstancesforeign
commercehasapowerfuleffectontheincreaseofrentsandonthe
exchangeablevalueofland。Butassoonasanyoneofthese
conditionsfailsorceasestooperate，foreigncommercemaybecome
thecauseofnationalstagnation，nayfrequentlyofconsiderable
andlong-continuedretrogression。
Theficklenessofforeigndemandhasthemostbanefuleffectof
allinthisrespect，ifinconsequenceofwars，failureofcrops，
diminutionofimportationfromotherparts，orowingtoanyother
circumstancesandoccurrences，themanufacturingnationrequires
largerquantitiesespeciallyofthenecessariesoflifeorraw
materials，orofthespecialstaplearticlesreferredto，andthen
ifthisdemandagaintoagreatextentceases，inconsequenceof
therestorationofpeace，ofrichharvests，oflargerimportation
fromothercountries，orinconsequenceofpoliticalmeasures。If
thedemandlastsmerelyforashorttime，somebenefitmayresult
fromittotheagriculturalnation；butifitlastforyearsora
seriesofyearsthenallthecircumstancesoftheagricultural
nation，thescaleofexpenditureofallprivateestablishments，
willhavebecomeregulatedbyit。Theproducerbecomesaccustomed
toacertainscaleofconsumption；andcertainenjoyments，which
underothercircumstanceshewouldhaveregardedasluxuries，
becomenecessariestohim。Relyingontheincreasedyieldandvalue
ofhislandedproperty，heundertakesimprovementsincultivation，
inbuildings，andmakespurchaseswhichotherwisehewouldnever
havedone。Purchasesandsales，contractsoflettingland，loans，
areconcludedaccordingtothescaleofincreasedrentsandvalues。
TheStateitselfdoesnothesitatetoincreaseitsexpensesin
accordancewiththeincreasedprosperityofprivatepersons。Butif
thisdemandafterwardssuddenlyceases，disproportionbetween
productionandconsumptionfollows；disproportionbetweenthe
decreasedvaluesoflandandthemoneyencumbrancesuponitwhich
continueundiminishedinamount；disproportionbetweenthemoney
rentpayableundertheleases，andthemoneyproduceoftheland
whichhasbeentakenonlease；disproportionbetweennational
incomeandnationalexpenditure；andinconsequenceofthese
disproportions，bankruptcy，embarrassment，discouragement，
retrogressionintheeconomicalaswellasinthementaland
politicaldevelopmentofthenation。Agriculturalprosperitywould
underthesecircumstancesactlikethestimulantofopiumorstrong
drink，stimulatingmerelyforamoment，butweakeningforawhole
lifetime。ItwouldbelikeFranklin\'sflashoflightning，whichfor
amomentdisplayedtheobjectsinashininglight，butonlyto
throwthembackintodeeperdarkness。
Aperiodoftemporaryandpassingprosperityinagricultureis
afargreatermisfortunethanuniformandlastingpoverty。If
prosperityistobringrealbenefittoindividualsandnations，it
mustbecontinuous。It，however，becomescontinuousonlyincaseit
increasesgradually，andincasethenationpossessesguarantees
forthisincreaseandforitsduration。Alowervalueoflandis
incomparablybetterthanfluctuationsinitsvalue；itisonlya
gradualbutsteadyincreaseinthatvaluethataffordstothe
nationlastingprosperity。Andonlybythepossessionofa
manufacturingpoweroftheirown，canwell-developednations
possessanyguaranteeforthesteadyandpermanentincreaseofthat
value。
Tohowverysmallanextentclearideasprevailastothe
effectofahomemanufacturingpowerontherentandvalueofland
incomparisonwiththeeffectwhichforeigntradehasonthem，is
shownmostplainlybythecircumstancethattheproprietorsof
vineyardsinFrancestillalwaysbelievethattheyareinjuriously
affectedbytheFrenchsystemofprotection，anddemandthe
greatestpossiblefreedomofcommercewithEnglandinhopesof
therebyincreasingtheirrents。
DrBowring，inhisreportofthecommercialrelationsexisting
betweenEnglandandFrance，thefundamentaltendencyofwhichisto
showthebenefittoFrancewhichalargerimportationofEnglish
fabricsandaconsequentlyincreasingexportationofFrenchwines
wouldoccasion，hasadducedfactsfromwhichthemoststriking
proofagainsthisownargumentcanbebrought。DrBowringquotes
theimportationofFrenchwinesintotheNetherlands2，515，193
gallons，1829againsttheannualimportationintoEngland431，509
gallonstoprovehowgreatlythesaleofFrenchwinesinEngland
couldbeincreasedbyfreercommercialinterchangebetweenthetwo
countries。
Nowsupposingalthoughitismorethanimprobablethatthe
saleofFrenchwinesinEnglandwouldnotfindobstaclesinthe
predilectionexistingthereforspirituousliquors，forstrong
beer，andforthestrongandcheapwinesofPortugal，Spain，
Sicily，Teneriffe，Madeira，andtheCape——supposingthatEngland
reallywastoextendherconsumptionofFrenchwinestothesame
proportionasthatoftheNetherlands，shewouldcertainly
calculatingaccordingtoherpopulationbeabletoincreaseher
consumptiontofiveorsixmilliongallonsi。e。tofromtento
fifteenfoldherpresentamount；andfromasuperficialpointof
viewthiscertainlyappearstopromisegreatadvantagetoFrance，
andtotheFrenchvineyardproprietors。
If，however，weinvestigatethismattertothebottom，we
obtainanotherresult。Byasmuchfreedomoftradeasispossible——
wewillnotsaycompletefreedomoftrade，althoughthelatter
wouldhavetobeacceptedaccordingtotheprincipleenunciated，
andtoBowring\'sarguments——itcanscarcelybedoubtedthatthe
EnglishwoulddrawtothemselvesalargepartoftheFrenchmarket
formanufacturedgoodsespeciallyasregardsthemanufacturesof
woollens，cotton，linen，iron，andpottery。Onthemostmoderate
estimatewemustassume，thatinconsequenceofthisdecreased
Frenchmanufacturingproductiononemillionfewerinhabitantswould
liveintheFrenchtowns，andthatonemillionfewerpersonswould
beemployedinagricultureforthepurposeofsupplyingthe
citizensofthosetownswithrawmaterialandnecessariesoflife。
Now，DrBowringhimselfestimatestheconsumptionofthecountry
populationinFranceat161/2gallonsperhead，andthatofthe
townpopulationatdoublethatquantity，or33gallonsperhead。
Thusinconsequenceofthediminutionofthehomemanufacturing
powereffectedbyfreetrade，theinternalconsumptionofwines
woulddecreaseby50milliongallons，whiletheexportationofwine
couldonlyincreaseby5or6milliongallons。Sucharesultcould
scarcelybetothespecialadvantageoftheFrenchproprietorsof
vineyards，sincetheinternaldemandforwineswouldnecessarily
suffertentimesmorethantheexternaldemandcouldpossiblygain。
Inoneword：itisevidentasrespectstheproductionofwine，
asalsointhatofmeat，ofcorn，andofrawmaterialsand
provisionsgenerally，thatinthecaseofagreatnationwell
fittedtoestablishamanufacturingpowerofitsown，theinternal
manufacturingproductionoccasionstentotwentytimesmoredemand
fortheagriculturalproductsoftemperateclimates，consequently
actstentotwentytimesmoreeffectuallyontheincreaseofthe
rentandexchangeablevalueofrealestate，thanthemost
flourishingexportationofsuchproductscando。Themost
convincingproofofthismayalsobeseenintheamountofrents
andtheexchangeablevalueoflandnearlargetowns，ascompared
withtheiramountandvalueindistantprovinces，eventhoughthese
latterareconnectedwiththecapitalbygoodroadsand
conveniencesforcommercialintercourse。
Thedoctrineofrentcaneitherbeconsideredfromthepointof
viewofvaluesorfromthepointofviewofproductivepowers；it
canfurtherbeconsideredwithrespectmerelytoprivaterelations，
namely，therelationsbetweenlandedproprietor，farmer，and
labourer，orwithespecialregardtothesocialandnational
relationsandconditions。Theschoolhastakenupthisdoctrine
chieflyfromthesolepointofviewofprivateeconomy。Sofaras
weknow，forinstance，nothinghasbeenadducedbyittoshowhow
theconsumptionoftherentsofthenationisthemoreadvantageous
themoreittakesplaceintheproximityoftheplacewhenceitis
derived，buthowneverthelessinthevariousStatesthat
consumptiontakesplaceprincipallyattheseatofthesovereign
e。g。inabsolutemonarchiesmostlyinthenationalmetropolis，
farawayfromtheprovinceswhereitisproduced，andthereforein
amannertheleastadvantageoustoagriculture，tothemostuseful
industries，andtothedevelopmentofthementalpowersofthe
nation。Wherethelandowningaristocracypossessnorightsandno
politicalinfluenceunlesstheyliveattheCourt，oroccupy
officesofState，andwhereallpublicpowerandinfluenceis
centralisedinthenationalmetropolis，landownersareattractedto
thatcentralpoint，wherealmostexclusivelytheycanfindthe
meansofsatisfyingtheirambition，andopportunitiesforspending
theincomeoftheirlandedpropertyinapleasantmanner；andthe
morethatmostlandownersgetaccustomedtoliveinthecapital，
andthelessthataresidenceintheprovincesofferstoeach
individualopportunitiesforsocialintercourseandformentaland
materialenjoymentsofamorerefinedcharacter，themorewill
provincialliferepelhimandthemetropolisattracthim。The
provincetherebylosesandthemetropolisgainsalmostallthose
meansofmentalimprovementwhichresultfromthespendingof
rents，especiallythosemanufacturesandmentalproducerswhich
wouldhavebeenmaintainedbytherent。Themetropolisunderthose
circumstances，indeed，appearsextremelyattractivebecauseit
unitesinitselfallthetalentsoftheintellectualworkersand
thegreatestpartofthematerialtradeswhichproducearticlesof
luxury。Buttheprovincesaretherebydeprivedofthosemental
powers，ofthosematerialmeans，andespeciallyofthose
industries，whichchieflyenabletheagriculturisttoundertake
agriculturalimprovements，andstimulatehimtoeffectthem。
Inthesecircumstancesliestoagreatextentthereasonwhyin
France，especiallyunderabsolutemonarchy，alongsideofa
metropolissurpassinginintellectandsplendouralltownsofthe
Europeancontinent，agriculturemadebutslightprogress，andthe
provincesweredeficientinmentalcultureandinuseful
industries。Butthemorethatthelandedaristocracygainsin
independenceoftheCourt，andininfluenceinlegislationand
administration，themorethattherepresentativesystemandthe
systemofadministrationgrantstothetownsandprovincesthe
rightofadministeringtheirownlocalaffairsandoftakingpart
inthelegislationandgovernmentoftheState，andconsequently
themorethatrespectandinfluencecanbeattainedinthe
provincesandbylivingthere，somuchthemorewillthelanded
aristocracy，andtheeducatedandwell-to-docitizens，bedrawnto
thoselocalitiesfromwhichtheyderivedtheirrents，thegreater
alsowillbetheinfluenceoftheexpenditureofthoserentsonthe
developmentofthementalpowersandsocialinstitutions，onthe
promotionofagriculture，andonthedevelopmentofthose
industrieswhichareusefultothegreatmassesofthepeoplein
theprovince。
TheeconomicalconditionsofEnglandaffordproofofthis
observation。ThefactthattheEnglishlandedproprietorlivesfor
thegreatestportionoftheyearonhisestates，promotesin
manifoldwaystheimprovementofEnglishagriculture：directly，
becausetheresidentlandownerdevotesaportionofhisrentto
undertakingonhisownaccountimprovementsinagriculture，orto
supportingsuchimprovementswhenundertakenbyhistenants；
indirectly，becausehisownconsumptiontendstosupportthe
manufacturesandagenciesofmentalimprovementandCivilisation
existingintheneighbourhood。Fromthesecircumstancesitcan
furtherpartlybeexplainedwhyinGermanyandinSwitzerland，in
spiteofthewantoflargetowns，ofimportantmeansoftransport，
andofnationalinstitutions，agricultureandCivilisationin
generalareinamuchhigherconditionthaninFrance。
ButthegreaterrorintowhichinthismatterAdamSmithand
hisschoolhavefallenisthatwhichwehavealreadybefore
indicated，butwhichcanbeheremoreclearlyshown，viz。thathe
didnotclearlyrecognisetheinfluenceofmanufacturesonthe
increaseofrents，onthemarketvalueoflandedpropertyitself，
andontheagriculturalcapital，anddidnotstatethisbyany
meanstoitsfullextent，but，onthecontrary，hasdrawna
comparisonbetweenagricultureandmanufacturesinsuchamanner
thathewouldtoamakeitappearthatagricultureisfarmore
valuableandimportantnationthanmanufactures，andthatthe
prosperityresultingfromitisfarmorelastingthanthe
prosperityresultingfromthelatter。AdamSmithinsodoingmerely
sanctionedtheerroneousviewofthephysiocraticschool，although
inasomewhatmodifiedmanner。Hewasevidentlymisledbythe
circumstancethat——aswehavealreadydemonstratedbythe
statisticalconditionsofEngland——thematerialagricultural
capitalisevenintherichestmanufacturingcountrytento
twentytimesmoreimportantthanthematerialmanufacturing
capital；infact，eventheannualagriculturalproductiOnfar
exceedsinvaluethetotalmanufacturingcapital。Thesame
circumstancemayalsohaveinducedthephysiocraticschoolto
over-estimatethevalueofagricultureincomparisonwith
manufactures。Superficiallyconsidered，itcertainlyappearsasif
agricultureenrichesacountrytentimesmore，andconsequently
deservestentimesmoreconsideration，andistentimesmore
importanttotheStatethanmanufactures。This，however，ismerely
apparent。Ifweinvestigatethecausesofthisagricultural
prosperitytotheirbasis，wefindthemprincipallyinthe
existenceofmanufactures。Itisthose218millionsof
manufacturingcapitalwhichhaveprincipallycalledintoexistence
those3，311millionsofagriculturalcapital。Thesame
considerationholdsgoodasrespectsmeansoftransport；itisthe
moneyexpendedinconstructingthemwhichhasmadethoselands
whicharewithinthereachofthecanalsmorevaluable。Ifthe
meansoftransportalongacanalbedestroyed，wemayusethewater
whichhasbeenhithertoemployedfortransport，forirrigating
meadows——apparently，therefore，forincreasingagricultural
capitalandagriculturalrents，&c。；butevensupposingthatby
suchaprocessthevalueofthesemeadowsrosetomillions，this
alteration，apparentlyprofitabletoagriculture，willnevertheless
lowerthetotalvalueofthelandedpropertywhichiswithinreach
ofthecanaltentimesmore。
Consideredfromthispointofview，fromthecircumstancethat
thetotalmanufacturingcapitalofacountryissosmallin
comparisonwithitstotalagriculturalcapital，conclusionsmustbe
drawnofatotallydifferentcharacterfromthosewhichthepresent
andprecedingschoolhavedrawnfromit。Themaintenanceand
augmentationofthemanufacturingpowerseemnow，eventothe
agriculturist，themorevaluable，thelesscapitalascomparedwith
agricultureitrequirestoabsorbinitselfandtoputinto
circulation。Yes，itmustnowbecomeevidenttotheagriculturist，
andespeciallytotherent-ownersandthelandedproprietorsofa
country，thatitwouldbetotheirinteresttomaintainanddevelop
aninternalmanufacturingpower，evenhadtheytoprocurethe
requisitecapitalwithouthopeofdirectrecompense；justasitis
totheirinteresttoconstructcanals，railways，androadsevenif
theseundertakingsyieldnorealnettprofit。Letusapplythe
foregoingconsiderationstothoseindustrieswhichlienearestand
aremostnecessarytoagriculture，e。g。flourmills；andtherewill
benoroomfordoubtastothecorrectnessofourviews。Compare，
ontheonehand，thevalueoflandedpropertyandrentina
districtwhereamillisnotwithinreachoftheagriculturist，
withtheirvalueinthosedistrictswherethisindustryiscarried
onintheirverymidst，andweshallfindthatalreadythissingle
industryhasaconsiderableeffectonthevalueoflandandon
rent；thatthere，undersimilarconditionsofnaturalfertility，
thetotalvalueofthelandhasnotmerelyincreasedtodouble，but
totenortwentytimesmorethanthecostoferectingthemill
amountedto；andthatthelandedproprietorswouldhaveobtained
considerableadvantagebytheerectionofthemill，evenifthey
hadbuiltitattheircommonexpenseandpresentedittothe
miller。Thelattercircumstance，infact，takesplaceeverydayin
thebackwoodsofNorthAmerica，where，incaseswhenanindividual
hasnotadequatecapitaltoerectsuchworksentirelyathisown
expense，thelandownergladlyhelpshimbycontributinglabour，by
teamwork，freegiftsoftimber，&c。Infact，thesamethingalso
occurred，althoughinanotherform，incountriesofearlier
civilisation；heremustundoubtedlybesoughttheoriginofmany
ancientfeudal\'commonmill\'rights。
Asitisinthecaseofthecornmill，soisitinthoseof
saw，oil，andplastermills，soisitinthatofironworks；
everywhereitcanbeprovedthattherentandthevalueoflanded
propertyriseinproportionasthepropertyliesnearertothese
industries，andespeciallyaccordingastheyareincloserorless
closecommercialrelationswithagriculture。
Andwhyshouldthisnotbethecasewithwoollen，flax，hemp，
paper，andcottonmills？Whynotwithallmanufacturingindustries？
Wesee，atleast，everywherethatrentandvalueoflandedproperty
riseinexactlythesameproportionwiththeproximityofthat
propertytothetown，andwiththedegreeinwhichthetownis
populousandindustrious。Ifinsuchcomparativelysmalldistricts
wecalculatethevalueofthelandedpropertyandthecapital
expendedthereon，and，ontheotherhand，thevalueofthecapital
employedinvariousindustries，andcomparetheirtotalamount，we
shallfindeverywherethattheformerisatleasttentimeslarger
thanthelatter。Butitwouldbefollytoconcludefromthisthat
anationobtainsgreateradvantagesbyinvestingitsmaterial
capitalinagriculturethaninmanufactures，andthattheformeris
initselfmorefavourabletotheaugmentationofcapitalthanthe
latter。Theincreaseofthematerialagriculturalcapitaldepends
forthemostpartontheincreaseofthematerialmanufacturing
capital；andnationswhichdonotrecognisethistruth，however
muchtheymaybefavouredbynatureinagriculture，willnotonly
notprogress，butwillretrogradeinwealth，population，culture，
andpower。
Wesee，nevertheless，howtheproprietorsofrentandoflanded
propertynotunfrequentlyregardthosefiscalandpolitical
regulationswhichaimattheestablishmentofanative
manufacturingpowerasprivilegeswhichservemerelytoenrichthe
manufacturers，theburdenofwhichtheythelandedinteresthave
exclusivelytobear。They，whoatthebeginningoftheir
agriculturaloperationssoclearlyperceivedwhatgreatadvantages
theymightobtainifacornmill，asawmill，oranironworkwere
establishedintheirneighbourhood，thattheythemselvessubmitted
tothegreatestsacrificesinordertocontributetowardsthe
erectionofsuchworks，cannolonger，whentheirinterestsas
agriculturistshavesomewhatimproved，comprehendwhatimmense
advantagesthetotalagriculturalinterestofthecountrywould
derivefromaperfectlydevelopednationalindustryofitsown，and
howitsownadvantagedemandsthatitshouldsubmittothose
sacrificeswithoutwhichthisobjectcannotbeattained。It
thereforehappens，that，onlyinafewandonlyinvery
well-educatednations，themindofeachseparatelandedproprietor，
thoughitisgenerallykeenlyenoughalivetothoseinterestswhich
liecloseathand，issagaciousenoughtoappreciatethosegreater
oneswhicharemanifesttoamoreextendedview。
Itmustnot，moreover，beforgottenthatthepopulartheoryhas
materiallycontributedtoconfusetheopinionsoflanded
proprietors。SmithandSayendeavouredeverywheretorepresentthe
exertionsofmanufacturerstoobtainmeasuresofprotectionas
inspirationsofmereself-interest，andtopraise，onthecontrary，
thegenerosityanddisinterestednessofthelandedproprietors，who
arefarfromclaiminganysuchmeasuresforthemselves。Itappears，
however，thatthelandedproprietorshavemerelybecomemindfulof
andbeenstimulatedtothevirtueofdisinterestedness，whichisso
highlyattributedtothem，inordertoridthemselvesofit。Forin
thegreatestnumberof，andinthemostimportant，manufacturing
states，theselandownershavealsorecentlydemandedandobtained
measuresofprotection，althoughaswehaveshowninanother
placeitistotheirowngreatestinjury。Ifthelanded
proprietorsformerlymadesacrificestoestablishanational
manufacturingpoweroftheirown，theydidwhattheagriculturist
inacountryplacedoeswhenhemakessacrificesinorderthata
cornmilloranironforgemaybeestablishedinhisvicinity。If
thelandedproprietorsnowrequireprotectionalsofortheir
agriculture，theydowhatthoseformerlandedproprietorswould
havedoneif，afterthemillhasbeenerectedbytheiraid，they
requiredthemillertohelpincultivatingtheirfields。Without
doubtthatwouldbeafoolishdemand。Agriculturecanonly
progress，therentandvalueoflandcanonlyincrease，inthe
ratioinwhichmanufacturesandcommerceflourish；andmanufactures
cannotflourishiftheimportationofrawmaterialsandprovisions
isrestricted。Thisthemanufacturerseverywherefelt。Forthe
fact，however，thatthelandedproprietorsnotwithstandingobtained
measuresofprotectioninmostlargestates，thereisadouble
reason。Firstly，instateshavingrepresentativegovernment，the
landowner\'sinfluenceisparamountinlegislation，andthe
manufacturersdidnotventuretoopposethemselvesperseveringlyto
thefoolishdemandofthelandowners，fearinglesttheymight
therebyinclinethelattertofavourtheprinciplesoffreetrade；
theypreferredtoagreewiththelandedproprietors。
Itwastheninsinuatedbytheschooltothelandedproprietors
thatitisjustasfoolishtoestablishmanufacturesbyartificial
meansasitwouldbetoproducewineincoldclimatesin
greenhouses；thatmanufactureswouldoriginateinthenatural
courseofthingsoftheirownaccord；thatagricultureaffords
incomparablymoreopportunityfortheincreaseofcapitalthan
manufactures；thatthecapitalofthenationisnottobeaugmented
byartificialmeasures；thatlawsandStateregulationscanonly
induceaconditionofthingslessfavourabletotheaugmentationof
wealth。Finally，wheretheadmissioncouldnotbeavoidedthat
manufactureshadaninfluenceoveragriculture，itwassoughtat
leasttorepresentthatinfluencetobeaslittleandasuncertain
aspossible。Inanycaseitwassaidifmanufactureshadan
influenceoveragriculture，atleasteverythingisinjuriousto
agriculturethatisinjurioustomanufactures，andaccordingly
manufacturesalsohadaninfluenceontheincreaseoftherentof
land，butmerelyanindirectone。But，ontheotherhand，the
increaseofpopulationandofcattle，theimprovementsin
agriculture，theperfectionofthemeansoftransport，&c。hada
directinfluenceontheincreaseofrent。Thecaseisthesamehere
inreferencetothisdistinctionbetweendirectandindirect
influenceasonmanyotherpointswheretheschooldrawsthis
distinctione。g。inrespectoftheresultsofmentalculture，and
herealsoistheexamplealreadymentionedbyusapplicable；itis
likethefruitofthetree，whichclearlyinthesenseofthe
schoolisanindirectresult，inasmuchasitgrowsonthetwig，
whichagainisafruitofthebranch，thisagainisafruitofthe
trunk，andthelatterafruitoftheroot，whichaloneisadirect
productofthesoil。Orwoulditnotbejustassophisticalto
speakofthepopulation，thestockofcattle，themeansof
transport，&c。asdirectcauses；butofmanufactures，onthe
contrary，asanindirectcauseoftheaugmentationofrents，while，
nevertheless，one\'sveryeyesightteachesoneineverylarge
manufacturingcountrythatmanufacturesthemselvesareachief
causeoftheaugmentationofpopulation，ofthestockofcattle，
andofmeansoftransport，&c。？Andwoulditbelogicalandjustto
co-ordinatetheseeffectsofmanufactureswiththeircause——in
fact，toputtheseresultsofmanufacturesattheheadasmain
causes，andtoputthemanufacturesthemselvesasanindirect
consequently，almostasasecondarycausebehindtheformer？And
whatelsecanhaveinducedsodeeplyinvestigatingageniusasAdam
Smithtomakeuseofanargumentsopervertedandsolittlein
accordancewiththeactualnatureofthings，thanadesiretoput
especiallyintotheshademanufactures，andtheirinfluenceonthe
prosperityandthepowerofthenation，andontheaugmentationof
therentandthevalueoftheland？Andfromwhatothermotivecan
thishavetakenplacethanawishtoavoidexplanationswhose
resultswouldspeaktooloudlyinfavourofthesystemof
protection？Theschoolhasbeenespeciallyunfortunatesincethe
timeofAdamSmithinitsinvestigationsastothenatureofrent。
Ricardo，andafterhimMill，M\'Culloch，andothers，areofopinion
thatrentispaidonaccountofthenaturalproductivefertility
inherentinthelanditself。Ricardohasbasedawholesystemon
thisnotion。IfhehadmadeanexcursiontoCanada，hewouldhave
beenabletomakeobservationsthereineveryvalley，onevery
hill，whichwouldhaveconvincedhimthathistheoryisbasedon
sand。Ashe，however，onlytookintoaccountthecircumstancesof
England，hefellintotheerroneousideathattheseEnglishfields
andmeadowsforwhosepretendednaturalproductivecapabilitysuch
handsomerentsarenowpaid，haveatalltimesbeenthesamefields
andmeadows。Theoriginalnaturalproductivecapabilityoflandis
evidentlysounimportant，andaffordstothepersonusingitso
smallanexcessofproducts，thattherentderivablefromitalone
isnotworthmentioning。AllCanadainitsoriginalstate
inhabitedmerelybyhunterswouldyieldinmeatandskins
scarcelyenoughincometopaythesalaryofasingleOxonian
professorofpoliticaleconomy。Thenaturalproductivecapability
ofthesoilinMaltaconsistsofrocks，whichwouldscarcelyhave
yieldedarentatanytime。Ifwefollowupwiththemind\'seyethe
courseofthecivilisationofwholenations，andoftheir
conversionfromtheconditionofhunterstothepastoralcondition，
andfromthistothatofagriculturists，&c。，wemayeasily
convinceourselvesthattherenteverywherewasoriginallynil，and
thatitroseeverywherewiththeprogressofcivilisation，of
population，andwiththeincreaseofmentalandmaterialcapital。
Bycomparingthemereagriculturalnationwiththeagricultural，
manufacturing，andcommercialnation，itwillbeseenthatinthe
lattertwentytimesmorepeopleliveonrentsthanintheformer。
AccordingtoMarshal\'sstatisticsofGreatbritain，forexample，in
EnglandandScotland16，537，398humanbeingswerelivingin1831，
amongwhomwere1，116，398rentiers。Wecouldscarcelyfindin
Polandonanequalspaceoflandthetwentiethpartofthisnumber。
Ifwedescendfromgeneralstoparticularsandinvestigatethe
originandcauseoftherentalofseparateestates，wefind
everywherethatitistheresultofaproductivecapabilitywhich
hasbeenbestowedonitnotspontaneouslybynature，butchiefly
directlyorindirectlythroughthementalandmateriallabourand
capitalemployedthereonandthroughthedevelopmentofsociety。We
see，indeed，howpiecesoflandyieldrentswhichthehandofmen
hasneverstirredbycultivation，as，forinstance，quarries，sand
pits，pasturegrounds；butthisrentismerelytheeffectofthe
increaseofculture，capital，andpopulationinthevicinity。We
see，ontheotherhand，thatthosepiecesoflandbringmostrent
whosenaturalproductivecapabilityhasbeentotallydestroyed，and
whichservefornootherusethanformentoeatanddrink，sit，
sleep，orwalk，work，orenjoythemselves，teachorbetaughtupon，
viz。buildingsites。
Thebasisofrentistheexclusivebenefitoradvantagewhich
thegroundyieldstothatindividualatwhoseexclusivedisposalit
isplaced，andthegreatnessofthisbenefitisdetermined
especiallyaccordingtotheamountofavailablementalandmaterial
capitalinthecommunityinwhichheisplaced，andalsoaccording
totheopportunitywhichthespecialsituationandpeculiar
characterofthepropertyandtheutilisationofcapitalpreviously
investedthereinaffordstothepersonexclusivelypossessingthe
propertyforobtainingmaterialvalues，orforsatisfyingmental
andbodilyrequirementsandenjoyments。
Rentistheinterestofacapitalwhichisfixedtoanatural
fund，orwhichisacapitalisednaturalfund。Theterritory，
however，ofthatnationwhichhasmerelycapitalisedthenatural
fundsdevotedtoagriculture，andwhichdoessointhatimperfect
mannerwhichisthecaseinmereagriculture，yieldsincomparably
lessrentthantheterritoryofthatnationwhichcombines
agriculturalandmanufacturingindustryonitsterritory。The
rentiersofsuchacountrylivemostlyinthesamenationwhich
suppliesthemanufacturedgoods。Butwhenthenationwhichisfar
advancedinagricultureandpopulationestablishesamanufacturing
industryofitsown，itcapitalisesaswehavealreadyprovedin
aformerchapternotmerelythosepowersofnaturewhichare
speciallyserviceableformanufacturesandwerehitherto
unemployed，butalsothegreatestpartofthemanufacturingpowers
servingforagriculture。Theincreaseofrentinsuchanation，
therefore，infinitelyexceedstheinterestofthematerialcapital
requiredtodevelopthemanufacturingpower。
NOTES：
1。GeneralStatisticsoftheBritishEmpireLondon，1836。
Chapter21
TheManufacturingPowerandCommerce
Wehavehithertomerelyspokenoftherelationsbetween
agricultureandmanufactures，becausetheyformthefundamental
ingredientsofthenationalproduction，andbecause，before
obtainingaclearviewoftheirmutualrelations，itisimpossible
tocomprehendcorrectlytheactualfunctionandpositionof
commerce。Commerceisalsocertainlyproductiveastheschool
maintains；butitissoinquiteadifferentmannerfrom
agricultureandmanufactures。Theselatteractuallyproducegoods，
commerceonlybringsabouttheexchangeofthegoodsbetween
agriculturistsandmanufacturers，betweenproducersandconsumers。
Fromthisitfollowsthatcommercemustberegulatedaccordingto
theinterestsandwantsofagricultureandmanufactures，notvice
vers？
Buttheschoolhasexactlyreversedthislastdictumby
adoptingasafavouriteexpressionthesayingofoldGourney，
\'Laissezfaire，laissezpasser，\'anexpressionwhichsoundsnoless
agreeablytorobbers，cheats，andthievesthantothemerchant，and
isonthataccountratherdoubtfulasamaxim。Thisperversityof
surrenderingtheinterestsofmanufacturesandagriculturetothe
demandsofcommerce，withoutreservation，isanaturalconsequence
ofthattheorywhicheverywheremerelytakesintoconsideration
presentvalues，butnowherethepowersthatproducethem，and
regardsthewholeworldasbutoneindivisibierepublicof
merchants。Theschooldoesnotdiscernthatthemerchantmaybe
accomplishinghispurposeviz。gainofvaluesbyexchangeatthe
expenseoftheagriculturistsandmanufacturers，attheexpenseof
thenation\'sproductivepowers，andindeedofitsindependence。It
isallthesametohim；andaccordingtothecharacterofhis
businessandoccupation，heneednottroublehimselfmuch
respectingthemannerinwhichthegoodsimportedorexportedby
himactonthemorality，theprosperity，orthepowerofthe
nation。Heimportspoisonsasreadilyasmedicines。Heenervates
wholenationsthroughopiumandspirituousliquors。Whetherheby
hisimportationsandsmugglingsbringsoccupationandsustenanceto
hundredsofthousands，orwhethertheyaretherebyreducedto
beggary，doesnotsignifytohimasamanofbusiness，ifonlyhis
ownbalanceisincreasedthereby。Thenifthosewhohavebeen
reducedtowantbreadseektoescapethemiseryintheirfatherland
byemigrating，hecanstillobtainprofitbythebusinessof
arrangingtheiremigration。Inthetimeofwarheprovidesthe
enemywitharmsandammunition。Hewould，ifitwerepossible，sell
fieldsandmeadowstoforeigncountries，andwhenhehadsoldthe
lastbitoflandwouldplacehimselfonboardhisshipandexport
himself。
Itisthereforeevidentthattheinterestofindividual
merchantsandtheinterestofthecommerceofawholenationare
widelydifferentthings。InthissenseMontesquieuhaswellsaid，
\'IftheStateimposesrestrictionsontheindividualmerchant，it
doessointheinterestofcommerce，andhistradeisnowheremore
restrictedthaninfreeandrichnations，andnowherelesssothan
innationsgovernedbydespots。\'1*Commerceemanatesfrom
manufacturesandagriculture，andnonationwhichhasnotbrought
withinitsownbordersboththesemainbranchesofproductiontoa
highstateofdevelopmentcanattaininourdaystoany
considerableamountofinternalandexternalcommerce。Informer
timestherecertainlyexistedseparatecitiesorleaguesofcities
whichwereenabledbymeansofforeignmanufacturersandforeign
agriculturiststocarryonalargeexchangetrade；butsincethe
greatagriculturalmanufacturingcommercialstateshavesprungup，
wecannolongerthinkoforiginatingamereexchangetradesuchas
theHanseTownspossessed。Inanycasesuchatradeisofso
precariousacharacter，thatithardlydeservesconsiderationin
comparisonwiththatwhichisbasedonthenation\'sownproduction。
Themostimportantobjectsofinternalcommercearearticlesof
food，salt，fuel，andbuildingmaterial，clothingmaterials，then
agriculturalandmanufacturingutensilsandimplements，andtheraw
materialsofagriculturalandminingproductionwhicharenecessary
formanufactures。Theextentofthisinternalinterchangeis
beyondallcomparisongreaterinanationinwhichmanufacturing
industryhasattainedahighstageofdevelopmentthaninamerely
agriculturalnation。Attimesinthelattertheagriculturistlives
chieflyonhisownproductions。Fromwantofmuchdemandfor
variousproductsandlackofmeansoftransport，heisobligedto
produceforhimselfallhisrequirementswithoutregardtowhathis
landismorespeciallyfittedtoproduce；fromwantofmeansof
exchangehemustmanufacturehimselfthegreaterpartofthe
manufacturedarticleswhichherequires。Fuel，buildingmaterials，
provisions，andmineralproductscanfindonlyaverylimited
marketbecauseoftheabsenceofimprovedmeansoftransport，and
hencecannotserveasarticlesforadistanttrade。
Owingtothelimitedmarketandthelimiteddemandforsuch
products，noinducementforstoringthemorfortheaccumulationof
capitalexists。Hencethecapitaldevotedbymereagricultural
nationstointernalcommerceisalmostnil；henceallarticlesof
production，whichdependespeciallyongoodorbadweather，are
subjecttoextraordinaryfluctuationinprices；hencethedangerof
scarcityandfamineisthereforegreaterthemoreanynation
restrictsitselftoagriculture。
Theinternalcommerceofanationmainlyarisesinconsequence
ofandinproportiontotheactivityofitsinternalmanufactures，
oftheimprovedmeansoftransportcalledforthbythem，andofthe
increaseofpopulation，andattainsanimportancewhichistento
twentyfoldgreaterthantheinternaltradeofamerely
agriculturalnation，andfivetotenfoldthatofthemost
flourishingforeigntrade。Ifanyonewillcomparetheinternal
commerceofEnglandwiththatofPolandorSpain，hewillfindthis
observationconfirmed。
Theforeigncommerceofagriculturalnationsofthetemperate
zone，solongasitislimitedtoprovisionsandrawmaterials，
cannotattaintoimportance。
Firstly，becausetheexportsoftheagriculturalnationare
directedtoafewmanufacturingnations，whichthemselvescarryon
agriculture，andwhichindeed，becauseoftheirmanufacturesand
theirextendedcommerce，carryitononamuchmoreperfectsystem
thanthemereagriculturalnation；thatexporttradeistherefore
neithercertainnoruniform。Thetradeinmereproductsisalways
amatterofextraordinaryspeculation，whosebenefitsfallmostly
tothespeculatingmerchants，butnottotheagriculturistsorto
theproductivepoweroftheagriculturalnation。
Secondly，becausetheexchangeofagriculturalproductsfor
foreignmanufacturedgoodsisliabletobegreatlyinterruptedby
thecommercialrestrictionsofforeignstatesandbywars。
Thirdly，becausetheexportofmereproductschieflybenefits
countrieswhicharesituatednearseacoastsandthebanksof
navigablerivers，anddoesnotbenefittheinlandterritory，which
constitutesthegreaterpartoftheterritoryoftheagricultural
nation。
Fourthlyandfinally，becausetheforeignmanufacturingnation
mayfindittoitsinteresttoprocureitsmeansofsubsistenceand
rawmaterialsfromothercountriesandnewlyformedcolonies。
ThustheexportofGermanwooltoEnglandisdiminishedby
importationsintoEnglandfromAustralia；theexportsofFrenchand
GermanwinestoEnglandbyimportationsfromSpain，Portugal，
Sicily，theSpanishandPortugueseislands，andfromtheCape；the
exportsofPrussiantimberbyimportationsfromCanada。
Infact，preparationshavealreadybeenmadetosupplyEngland
withcottonchieflyfromtheEastIndies。IftheEnglishsucceedin
restoringtheoldcommercialroute，ifthenewStateofTexas
becomesstrong，ifcivilisationinSyriaandEgypt，inMexicoand
theSouthAmericanstatesprogresses，thecottonplantersofthe
UnitedStateswillalsobegintoperceivethattheirowninternal
marketwillaffordthemthesafest，mostuniform，andconstant
demand。
Intemperateclimates，byfarthelargestpartofanation\'s
foreigncommerceoriginatesinitsinternalmanufactures，andcan
onlybemaintainedandaugmentedbymeansofitsownmanufacturing
power。
Thosenationsonlywhichproduceallkindsofmanufactured
goodsatthecheapestprices，canhavecommercialconnectionswith
thepeopleofallclimatesandofeverydegreeofcivilisation；can
supplyallrequirements，oriftheycease，createnewones；can
takeinexchangeeverykindofrawmaterialsandmeansof
subsistence。Suchnationsonlycanfreightshipswithavarietyof
objects，suchasarerequiredbyadistantmarketwhichhasno
internalmanufacturedgoodsofitsown。Onlywhentheexport
freightsthemselvessufficetoindemnifythevoyage，canshipsbe
loadedwithlessvaluablereturnfreights。
Themostimportantarticlesofimportationofthenationsof
thetemperatezoneconsistintheproductsoftropicalclimates，in
sugar，coffee，cotton，tobacco，tea，dyestuffs，cacao，spices，and
generallyinthosearticleswhichareknownunderthenameof
colonialproduce。Byfarthegreatestpartoftheseproductsis
paidforwithmanufacturedgoods。Inthisinterchangechiefly
consiststhecauseoftheprogressofindustryinmanufacturing
Countriesofthetemperatezone，andoftheprogressof
civilisationandproductioninthecountriesofthetorridzone。
Thisconstitutesthedivisionoflabour，andcombinationofthe
powersofproductiontotheirgreatestextent，asthesenever
existedinancienttimes，andastheyfirstoriginatedfromthe
DutchandEnglish。
BeforethediscoveryoftherouteroundtheCape，theEast
stillfarsurpassedEuropeinmanufactures。Besidestheprecious
metalsandsmallquantitiesofcloth，linen，arms，irongoods，and
somefabricsofluxury，Europeanarticleswerebutlittleused
there。Thetransportbylandrenderedbothinwardandoutward
conveyanceexpensive。Theexportofordinaryagriculturalproducts
andcommonmanufacturedgoods，eveniftheyhadbeenproducedin
excess，inexchangeforthesilksandcottonstuffs，sugar，and
spices，oftheEast，couldnotbehopedfor。Whateverwemay，
therefore，readoftheimportanceofOrientalcommerceinthose
times，mustalwaysbeunderstoodrelatively；itwasimportantonly
forthattime，butunimportantcomparedwithwhatitisnow。
Thetradeintheproductsofthetorridzonebecamemore
importanttoEuropethroughtheacquisitionoflargerquantitiesof
thepreciousmetalsintheinteriorandfromAmerica，andthrough
thedirectintercoursewiththeEastbytherouteroundtheCape。
Itcouldnot，however，attaintouniversalimportanceaslongas
theEastproducedmoremanufacturedgoodsthansherequired。