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perfection of political institutions  security of persons and



property within the State; and the independence and power of the



nation externally  so much greater will be the production of



material Wealth。 On the other hand; the more goods that the



material producers produce; the more will mental production be



capable of being promoted。



    The most important division of occupations; and the most



important co…operation of productive powers in material production;



is that of agriculture and manufacture。 Both depend mutually upon



one another; as we have shown。



    As in the pin manufactory; so also in the nation does the



productiveness of every individual  of every separate branch of



production  and finally of the whole nation depend on the



exertions of all individuals standing in proper relation to one



another。 We call this relation the balance or the harmony of the



productive powers。 It is possible for a nation to possess too many



philosophers; philologers; and literati; and too few skilled



artisans; merchants; and seamen。 This is the consequence of highly



advanced and learned culture which is not supported by a highly



advanced manufacturing power and by an extensive internal and



external trade; it is as if in a pin manufactory far more pin heads



were manufactured than pin points。 The surplus pin heads in such a



nation are: a mass of useless books; subtle theoretical systems;



and learned controversies; through which the mind of the nation is



more obscured than cultivated; and is withdrawn from useful



occupations; consequently its productive powers are retarded in



their progress almost as much as if it possessed too many priests



and too few instructors of youth; too many soldiers and too few



politicians; too many administrators and too few judges and



defenders of justice and right。



    A nation which only carries on agriculture; is an individual



who in his material production lacks one arm。 Commerce is merely



the medium of exchange between the agricultural and the



manufacturing power; and between their separate branches。 A nation



which exchanges agricultural products for foreign manufactured



goods is an individual with one arm; which is supported by a



foreign arm。 This support may be useful to it; but not so useful as



if it possessed two arms itself; and this because its activity is



dependent on the caprice of the foreigner。 In possession of a



manufacturing power of its own; it can produce as much provisions



and raw materials as the home manufacturers can consume; but if



dependent upon foreign manufacturers; it can merely produce as much



surplus as foreign nations do not care to produce for themselves;



and which they are obliged to buy from another country。



    As between the different districts of one and the same country;



so does the division of labour and the co…operation of the



productive powers operate between the various nations of the earth。



The former is conducted by internal or national; the latter by



international commerce。 The international co…operation of



productive powers is; however; a very imperfect one; inasmuch as it



may be frequently interrupted by wars; political regulations;



commercial crises; &c。 Although it is the most important in one



sense; inasmuch as by it the various nations of the earth are



connected with one another; it is nevertheless the least important



with regard to the prosperity of any separate nation which is



already far advanced in civilisation。 This is admitted by writers



of the popular school; who declare that the home market of a nation



is without comparison more important than its foreign market。 It



follows from this; that it is the interest of every great nation to



make the national confederation of its productive powers the main



object of its exertions; and to consider their international



confederation as second in importance to it。



    Both international and national division of labour are chiefly



determined by climate and by Nature herself。 We cannot produce in



every country tea as in China; spices as in Java; cotton as in



Louisiana; or corn; wool; fruit; and manufactured goods as in the



countries of the temperate zone。 It would be folly for a nation to



attempt to supply itself by means of national division of labour



(i。e。 by home production) with articles for the production of which



it is not favoured by nature; and which it can procure better and



cheaper by means of international division of labour (i。e。 through



foreign commerce)。 And just as much does it betoken a want of



national intelligence or national industry if a nation does not



employ all the natural powers which it possesses in order to



satisfy its own internal wants; and then by means of the surplus of



its own productions to purchase those necessary articles which



nature has forbidden it to produce on its own territory。



    The countries of the world most favoured by nature; with regard



to both national and international division of labour; are



evidently those whose soil brings forth the most common necessaries



of life of the best quality and in the largest quantity; and whose



climate is most conducive to bodily and mental exertion; and these



are the countries of the temperate zone; for in these countries the



manufacturing power especially prospers; by means of which the



nation not merely attains to the highest degree of mental and



social development and of political power; but is also enabled to



make the countries of tropical climates and of inferior



civilisation tributary in a certain measure to itself。 The



countries of the temperate zone therefore are above all others



called upon to bring their own national division of labour to the



highest perfection; and to use the international division of labour



for their enrichment。







NOTES:







1。 Wealth of Nations; Book I。 chap。 i。







2。 Wealth of Nations; Book I。 chap。 i。







Chapter 14







Private Economy and National Economy











    We have proved historically that the unity of the nation forms



the fundamental condition of lasting national prosperity; and we



have shown that only where the interest of individuals has been



subordinated to those of the nation; and where successive



generations have striven for one and the same object; the nations



have been brought to harmonious development of their productive



powers; and how little private industry can prosper without the



united efforts both of the individuals who are living at the time;



and of successive generations directed to one common object。 We



have further tried to prove in the last chapter how the law of



union of powers exhibits its beneficial operation in the individual



manufactory; and how it acts with equal power on the industry of



whole nations。 In the present chapter we have now to demonstrate



how the popular school has concealed its misunderstanding of the



national interests and of the effects of national union of powers;



by confounding the principles of private economy with those of



national economy。



    'What is prudence in the conduct of every private family;' says



Adam Smith;(1*) 'can scarce be folly in that of a great kingdom。'



Every individual in pursuing his own interests necessarily promotes



thereby also the interests of the community。 It is evident that



every individual; inasmuch as he knows his own local circumstances



best and pays most attention to his occupation; is far better able



to judge than the statesman or legislator how his capital can most

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