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which; if used as arable fields; they would lose。 Ships; if used



for timber or for firewood; have a much lower value than when they



serve as means of transport。 What use can be made of manufacturing



buildings; water…power; and machinery if the spinning industry is



ruined? In like manner individuals lose; as a rule; the greatest



part of their productive power; consisting in experience; habits;



and skill; when they are displaced。 The school gives to all these



objects and properties the general name of capital; and would



transplant them (by virtue of this terminology) at its pleasure



from one field of employment to another。 J。 B。 Say thus advises the



English to divert their manufacturing capital to agriculture。 How



this wonder is to be accomplished he has not informed us; and it



has probably remained a secret to English statesmen to the present



day。 Say has in this place evidently confounded private capital



with national capital。 A manufacturer or merchant can withdraw his



capital from manufactures or from commerce by selling his works or



his ships and buying landed property with the proceeds。 A whole



nation; however; could not effect this operation except by



sacrificing a large portion of its material and mental capital。 The



reason why the school so deliberately obscures things which are so



clear is apparent enough。 If things are called by their proper



names; it is easily comprehended that the transfer of the



productive powers of a nation from one field of employment to



another is subject to difficulties and hazards which do not always



speak in favour of 'free trade;' but very often in favour of



national protection。







NOTES:







1。 Wealth of Nations; book IV。 chap。 ii。







2。 Compare the following paragraph; which appeared in the Times



during 1883:



    'MANUFACTURES AND AGRICULTURE。 The statistician of the



Agricultural Department of the United States has shown in a recent



report that the value of farm lands decreases in exact proportion



as the ratio of agriculture to other industries increases。 That is;



where all the labour is devoted to agriculture; the land is worth



less than where only half of the people are farm labourers; and



where only a quarter of them are so engaged the farms and their



products are still more valuable。 It is; in fact; proved by



statistics that diversified industries are of the greatest value to



a State; and that the presence of a manufactory near a farm



increases the value of the farm and its crops。 It is further



established that; dividing the United States into four sections or



classes; with reference to the ratio of agricultural workers to the



whole population; and putting those States having less than 30 per



cent of agricultural labourers in the first class; all having over



30 and less than 50 in the second; those between 50 and 70 in the



third; and those having 70 or more in the fourth; the value of



farms is in inverse ratio to the agricultural population; and that;



whereas in the purely agricultural section; the fourth class; the



value of the farms per acre is only 5 28c; in the next class it is



13 03c; in the third 22 21c; and in the manufacturing districts



40 91c。 This shows an enormous advantage for a mixed district。 Yet



not only is the land more valuable  the production per acre is



greater; and the wages paid to farm hands larger。 Manufactures and



varied industries thus not only benefit the manufacturers; but are



of equal benefit and advantage to the farmers as well。 The latter



would; therefore; do well to abandon their prejudice against



factories; which really increase the value of their property



instead of depreciating it。'  TR。







Chapter 20







The Manufacturing Power and the Agricultural Interest











    If protective duties in favour of home manufactures proved



disadvantageous to the consumers of manufactured goods and served



only to enrich the manufacturer; this disadvantage would especially



be felt by the landed proprietor and the agriculturist; the most



numerous and important class of those consumers。 But it can be



proved that even this class derives far greater advantages from the



establishment of manufactures; than the manufacturers themselves



do; for by means of these manufactures a demand for greater variety



and for larger quantities of agricultural products is created; the



value in exchange of these products is raised; the agriculturist is



placed in a position to utilise his land and his powers of labour



more profitably。 Hence emanates an increase of rent; of profits;



and wages; and the augmentation of rents and capital is followed by



an increase in the selling value of land and in the wages of



labour。



    The selling value of landed property is nothing else than



capitalised rent; it is dependent; on the one hand; on the amount



and the value of the rent; but; on the other hand; and chiefly; on



the quantities of mental and material capital existing in the



nation。



    Every individual and social improvement; especially every



augmentation of productive power in the nation; but; most of all;



of the manufacturing power; raises the amount of rents; while at



the same time it lessens the proportion which rent bears to the



gross produce。 In an agricultural nation little developed and



scantily peopled; e。g。 in Poland; the proportion of rent amounts to



one…half or one third the gross produce。 in a well…developed;



populous; and wealthy nation; e。g。 England; it only amounts to



one…fourth or one…fifth part of that produce。 Nevertheless; the



actual worth of this smaller proportion is disproportionately



greater than the worth of that larger proportion…in money value



especially; and still more in manufactured goods。 For the fifth



part of twenty…five bushels (the average produce of wheat in



England) equals five bushels; the third part; however; of nine



bushels (the average produce of wheat in Poland) amounts only to



three bushels; further; these five bushels in England are worth on



an average 25s。 to 30s。; while these three bushels in the interior



of Poland are at the most worth 8s。 to 9s。; and finally; goods in



England are at least twice as cheap as in manufactured Poland:



consequently the English landed proprietor is able to buy for his



30s。 of money…rent ten yards of cloth; but the Polish landowner for



his 9s。 of rent can obtain scarcely two yards; from which it is



evident that the English landed proprietor by the fifth part of the



gross produce is as rentier three times; and as consumer of



manufactured goods five times; better off than the Polish landowner



is by the third part of his gross produce。 But that farmers and



agricultural labourers also must in England (especially as



consumers of manufactured goods) be disproportionately better off



than in Poland; is shown by the fact that out of the produce of



twenty…five bushels in England twenty bushels go for sowing; for



cultivation of the field; wages; and profits: half of which (or ten



bushels) devoted to the last two items have an average value of



60s。 or twenty yards of cloth (at 3s。 per yard); while from the



produce of nine bushels in Poland only six bushels go for sowing;



cultivation of the field; profit; and wages; half of which; or



three bushels; devoted to the last two items; have merely a value



of 10s。 to 12s。 or three and a half yards of cloth。



    Rent is a chief means of usefully employing material capital。



Its price。 therefore; depends also on the quantity of the capital



exi

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